STAMFORD, Conn.--(BUSINESS WIRE)--June 15, 2006--Independence Holding Company (NYSE: IHC) today announced that it has executed a letter of intent to become the carrier for a $40 million block of dental business. The transaction is subject to execution of a definitive agreement and satisfaction of certain closing conditions. The parties currently anticipate closing on or around June 30, 2006. Assuming the transaction closes as anticipated, new and renewal business will be written on Standard Security Life as of January 1, 2007. Standard Security Life initially anticipates retaining 20% of the risk on this business.

About Independence Holding Company

IHC is a holding company principally engaged in the life and health insurance business and the acquisition of blocks of policies through its insurance company subsidiaries (Standard Security Life Insurance Company of New York and Madison National Life Insurance Company, Inc.), its affiliate (American Independence Corp. (NASDAQ: AMIC)), and its managing general underwriters, third party administrators, and marketing affiliates. Standard Security Life markets medical stop-loss, long-term and short-term disability, employer-sponsored group major medical, short-term medical, group life, dental, vision and managed health care products. Madison Life sells group life and disability, employer medical stop-loss, employer-sponsored group major medical, short-term medical, dental, vision, credit life and disability and individual life insurance. AMIC is a holding company principally engaged in the insurance and reinsurance business through Independence American Insurance Company and its managing general underwriter division.

Some of the statements included herein may be considered to be forward looking statements which are subject to certain risks and uncertainties. Factors which could cause the actual results to differ materially from those suggested by such statements are described from time to time in IHC's filings with the Securities and Exchange Commission.

Contacts
Independence Holding Company
David T. Kettig, 212-355-4141
www.Independenceholding.com

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