-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 LuasfoQQ8Fo4TDtPz2sFxoMW7/6uEk+wu0aLZKAvr3hl5KfWNOvZ2Sa1PIo7mhGR
 skia5qaitmfYMBkhhmpxdA==

<SEC-DOCUMENT>0001157523-04-004828.txt : 20040514
<SEC-HEADER>0001157523-04-004828.hdr.sgml : 20040514
<ACCEPTANCE-DATETIME>20040514092630
ACCESSION NUMBER:		0001157523-04-004828
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040331
FILED AS OF DATE:		20040514

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INVESTORS TITLE CO
		CENTRAL INDEX KEY:			0000720858
		STANDARD INDUSTRIAL CLASSIFICATION:	TITLE INSURANCE [6361]
		IRS NUMBER:				561110199
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11774
		FILM NUMBER:		04804716

	BUSINESS ADDRESS:	
		STREET 1:		121 N COLUMBIA ST
		STREET 2:		P O DRAWER 2687
		CITY:			CHAPEL HILL
		STATE:			NC
		ZIP:			27514
		BUSINESS PHONE:		9199682200

	MAIL ADDRESS:	
		STREET 1:		121 NORTH COLUMBIA STREET
		CITY:			CHAPEL HILL
		STATE:			NC
		ZIP:			27514
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d59587_10-q.htm
<DESCRIPTION>INVESTORS TITLE 10-Q
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.5ac) -->
     <!-- Project:        X:\JOBS\04-59587\d04-59587.eep                                   -->
     <!-- Control Number: 04-59587                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>Form 10-Q</TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>UNITED STATES<BR>SECURITIES
AND EXCHANGE COMMISSION</B><BR> Washington, D.C. 20549 </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>FORM 10-Q </FONT></H1>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>|X|</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarterly period ended March
31, 2004  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OR </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>|&nbsp;&nbsp;|</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the transition period from
______________________  to  ______________________</FONT></P>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commission File Number:
0-11774  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>INVESTORS TITLE COMPANY</B> </FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Exact name of registrant as specified in its charter) </FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>





<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" FSL="Project" -->
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=TOP>
    <td align=CENTER><font face="Times New Roman, Times, Serif" size=2>North Carolina
      </font></td>
    <td align=CENTER><font face="Times New Roman, Times, Serif" size=2>56-1110199
      </font></td>
  </tr>
  <tr valign=TOP>
    <td align=CENTER>
      <hr width=100% size=1 NOSHADE>
      <font face="Times New Roman, Times, Serif" size=2>(State of incorporation)
      </font> </td>
    <td align=CENTER>
      <hr width=100% size=1 NOSHADE>
      <font face="Times New Roman, Times, Serif" size=2>(I.R.S. Employer Identification
      No.) </font> </td>
  </tr>
</table>
<BR>



<table width=600 cellpadding=0 cellspacing=0 border=0>
  <tr valign=TOP>
    <td align=CENTER><font face="Times New Roman, Times, Serif" size=2>121 North
      Columbia Street, Chapel Hill, North Carolina 27514 </font></td>
  </tr>
  <tr valign=TOP>
    <td align=CENTER>
      <hr width=55% size=1 NOSHADE>
      <font face="Times New Roman, Times, Serif" size=2>(Address of principal
      executive offices) (Zip Code) </font></td>
  </tr>
</table>

<BR>

<table width=600 cellpadding=0 cellspacing=0 border=0>
  <tr valign=TOP>
    <td align=CENTER><font face="Times New Roman, Times, Serif" size=2>(919) 968-2200
  </font></td>
  </tr>
  <tr valign=TOP>
    <td align=CENTER>
      <hr width=20% size=1 NOSHADE>
      <font face="Times New Roman, Times, Serif" size=2>
(Registrant&#146;s telephone number, including area code)
 </font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the Registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. <BR>Yes <U>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp; </U>&nbsp;&nbsp;No <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of
the Exchange Act). Yes <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </U>&nbsp;&nbsp;No <U>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</U>   </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of March 31, 2004, there were 2,855,744 outstanding shares of common stock of Investors
Title Company, including 349,929 shares held by Investors Title Insurance Company, a
wholly owned subsidiary of Investors Title Company.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 11; page: 11" -->


<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INVESTORS TITLE
COMPANY<BR> AND SUBSIDIARIES  </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>INDEX</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>PART I.</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, Serif" size=2>FINANCIAL
      INFORMATION</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Item 1.</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>Financial
      Statements:</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="11"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT height="11"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap height="11"><font face="Times New Roman, Times, Serif" size=2><A HREF="#A001">Consolidated
      Balance Sheets as of March 31, 2004 and December 31, 2003</A></font></td>
    <td align=RIGHT height="11"><font face="Times New Roman, Times, Serif" size=2>1</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A002">Consolidated
      Statements of Income<br>
      &nbsp;&nbsp;&nbsp;&nbsp; For the Three Months Ended March 31, 2004 and 2003</A>
      </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A003">Consolidated
      Statements of Stockholders&#146; Equity<br>
      &nbsp;&nbsp;&nbsp;&nbsp; For the Three Months Ended March 31, 2004 and For the Year Ended December 31, 2003</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A004">Consolidated
      Statements of Cash Flows<br>
      &nbsp;&nbsp;&nbsp;&nbsp; For the Three Months Ended March 31, 2004 and 2003 </A>
      </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A005">Notes
      to Consolidated Financial Statements</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT valign="top"><font face="Times New Roman, Times, Serif" size=2>Item
      2.</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A006">Management&#146;s
      Discussion and Analysis of Financial Condition and Results of<br>
      &nbsp;&nbsp;&nbsp;&nbsp; Operations</A> </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Item 3.</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A007">Quantitative
      and Qualitative Disclosures About Market Risk</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>14</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Item 4.</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A008">Controls
      and Procedures</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>PART II.</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, Serif" size=2>OTHER
      INFORMATION</font></b></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Item 2.</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A009">Changes
      in Securities, Use of Proceeds &amp; Issuer Purchases of Equity Securities</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Item 6.</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><A HREF="#A0010">Exhibits
      and Reports on Form 8-K</A></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>16</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b><A HREF="#A011">SIGNATURES</A></b></font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>17</font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 12; page: 12" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.&nbsp;  FINANCIAL
INFORMATION </FONT></H1>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 1.&nbsp; <U>Financial
Statements</U> </FONT> </H1>

<A NAME="A001"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Investors Title
Company and Subsidiaries<BR>
Consolidated Balance Sheets<BR>
<I>As of March 31, 2004 and December 31, 2003</I> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>



<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th nowrap><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <td colspan=2 nowrap align="center"><b><font face="Times New Roman, Times, serif" size="2">March
      31, 2004 </font> </b>
      <hr width=100% size=1 NOSHADE>
    </td>
    <td align="center"><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td colspan=2 nowrap align="center"><font face="Times New Roman, Times, serif" size="2">December
      31, 2003 </font>
      <hr width=100% size=1 NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <th nowrap height="20"><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <td colspan=2 height="20" align="center" valign="top"><b><font face="Times New Roman, Times, serif" size="2">(Unaudited) </font></b></td>
    <td height="20" align="center" valign="top"><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td colspan=2 height="20" align="center" valign="top"><font face="Times New Roman, Times, serif" size="2">(Audited) </font></td>
  </tr>
  <tr valign=Bottom>
    <td width=76% align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><b>Assets</b> </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=8% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td width=5% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Cash
      and cash equivalents </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 4,761,041 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 5,125,356 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Investments
      in securities: </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed
      maturities: </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity,
      at amortized cost </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,343,339 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,526,030 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale,
      at fair value </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>68,857,649 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>60,803,807 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity
      securities, at fair value </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>8,359,781 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>14,556,785 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
      investments </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,166,963 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>955,561 </font></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      investments </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>81,727,732 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>79,842,183 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Premiums
      receivable, less allowance for doubtful accounts of </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2,364,000
      and $2,474,000 for 2004 and 2003, respectively </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>6,980,662 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,031,803 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Accrued
      interest and dividends </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>606,992 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>667,147 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Prepaid
      expenses and other assets </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,291,678 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>934,345 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Property
      acquired in settlement of claims </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>286,517 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>286,517 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Property,
      net </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,963,749 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,099,243 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Deferred
      income taxes, net </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,126,027 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,485,217 </font></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, Serif" size=2>Total
      Assets </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 100,744,398 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 100,471,811 </font></td>
  </tr>
  <tr>
    <td nowrap><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, Serif" size=2>Liabilities
      and Stockholders&#146; Equity </font></b></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><b><font face="Times New Roman, Times, Serif" size=2>Liabilities: </font></b></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Reserves
      for claims (Note 2) </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 30,500,000 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 30,031,000 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Accounts
      payable and accrued liabilities </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,488,727 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,782,470 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Commissions
      and reinsurance payables </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>390,899 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>726,191 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Premium
      taxes payable </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>235,279 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>461,436 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Current
      income taxes payable </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>778,370 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>281,968 </font></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      liabilities </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>35,393,275 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>37,283,065 </font></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><b>Stockholders&#146;
      Equity:</b> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Class
      A Junior Participating preferred stock (shares authorized 100,000; no shares
      issued) </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&#151; </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Common
      stock-no par value (shares authorized 10,000,000; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;2,505,815
      and 2,503,923 shares issued and outstanding 2004 and 2003, </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;respectively,
      excluding 349,929 and 351,821 shares 2004 and 2003, </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;respectively,
      of common stock held by the Company&#146;s subsidiary) </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Retained
      earnings </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>61,841,289 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>59,756,927 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Accumulated
      other comprehensive income, net of deferred taxes of </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;$1,808,667
      and $1,768,477 for 2004 and 2003, respectively (Note 3) </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,509,833 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,431,818 </font></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      stockholders&#146; equity </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>65,351,123 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>63,188,746 </font></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td colspan=2 align=RIGHT>
      <hr size="1" NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2><b>Total
      Liabilities and Stockholders&#146; Equity</b> </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 100,744,398 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 100,471,811 </font></td>
  </tr>
  <tr>
    <td nowrap></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
</table>
<BR>
<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>See notes to consolidated
financial statements.</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 13; page: 13" -->
<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<A NAME="A002"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Investors Title Company
and Subsidiaries<BR>Consolidated Statements of Income<BR><I>For the Three Months Ended March 31,
2004 and 2003<BR>(Unaudited)</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <td colspan=2 align="center"><b><font face="Times New Roman, Times, serif" size="2">2004
      </font> </b>
      <hr width=100% size=1 NOSHADE>
    </td>
    <td align="center"><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td colspan=2 align="center"><font face="Times New Roman, Times, serif" size="2">2003
      </font>
      <hr width=100% size=1 NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=66% align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Revenues:</b>
      </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td width=12% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>
      </font></b></td>
    <td width=5% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=12% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting
      income: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums
      written </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 17,051,282
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 19,765,174
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less-premiums
      for reinsurance ceded </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>69,526
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>97,189 </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      premiums written </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>16,981,756
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>19,667,985
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
      income <b><font face="Times New Roman, Times, Serif" size=2>&#150; </font></b>
      interest and dividends </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>673,326
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>674,578
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      realized gain on sales of investments </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,431
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>23,047 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange
      services revenue (Note 5) </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>479,894
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>101,089
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>478,162
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>561,744
      </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>18,616,569
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>21,028,443
      </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Operating
      Expenses:</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions
      to agents </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>6,998,595
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,392,790
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      for claims (Note 2) </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,844,379
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,083,038
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries,
      employee benefits and payroll taxes (Note 6) </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,847,905
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,547,057
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office
      occupancy and operations </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,210,298
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,097,116
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business
      development </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>353,414
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>380,952
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes,
      other than payroll and income </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>201,114
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>54,123 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium
      and retaliatory taxes </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>333,004
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>421,286
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional
      fees </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>410,675
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>207,344
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>31,374
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>51,931 </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>15,230,758
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>17,235,637
      </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="14">&nbsp;</td>
    <td align=LEFT height="14">&nbsp;</td>
    <td align=RIGHT height="14">&nbsp;</td>
    <td align=RIGHT height="14">&nbsp;</td>
    <td align=LEFT height="14">&nbsp;</td>
    <td align=RIGHT height="14">&nbsp;</td>
    <td align=RIGHT height="14">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="14"><b><font face="Times New Roman, Times, Serif" size=2>Income
      Before Income Taxes </font></b></td>
    <td align=LEFT height="14"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT height="14"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT height="14"><b><font face="Times New Roman, Times, Serif" size=2>3,385,811
      </font></b></td>
    <td align=LEFT height="14"><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td align=RIGHT height="14"><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td align=RIGHT height="14"><font face="Times New Roman, Times, Serif" size=2>3,792,806
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Provision
      For Income Taxes </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,164,207
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,184,245
      </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size="1">
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Net Income
      </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 2,221,604
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,608,561
      </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Basic
      Earnings Per Common Share (Note 4) </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 0.89
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.04 </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Weighted
      Average Shares Outstanding &#150; Basic (Note 4) </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>2,505,368
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,513,507
      </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Diluted
      Earnings Per Common Share (Note 4) </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 0.84
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.00 </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Weighted
      Average Shares Outstanding&#150; Diluted (Note 4) </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>2,638,264
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,610,242
      </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Dividends
      Paid </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 75,187
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 75,471
      </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Dividends
      Per Share </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 0.03
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 0.03 </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE>
    </td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>See notes to consolidated
financial statements.</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 14; page: 14" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<A NAME="A003"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Investors Title
Company and Subsidiaries<BR>
Consolidated Statements of Stockholders&#146; Equity<BR><I>For the Three Months Ended
March 31, 2004 and For the Year Ended December 31, 2003<BR>(Unaudited)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Audited)</I> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>







<table cellpadding=0 cellspacing=0 border=0 width=800>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=2> </font></th>
    <th colspan=5 nowrap><font face="Times New Roman, Times, Serif" size=2>Common
      Stock </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap align="right"><font face="Times New Roman, Times, Serif" size=2>Retained </font></th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap align="right"><font face="Times New Roman, Times, Serif" size=2>Accumulated<br>
      Other Comprehensive<br>
      Income (Net<br>
      Unrealized Gain </font></th>
    <th nowrap align="right">&nbsp;</th>
    <th colspan=2 nowrap align="right"><font face="Times New Roman, Times, Serif" size=2>Total<br>
      Stockholders&#146; </font></th>
    <th nowrap>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=2> </font></th>
    <th colspan=2 nowrap valign="top"><font face="Times New Roman, Times, Serif" size=2>Shares
      </font></th>
    <th nowrap valign="top">&nbsp;</th>
    <th colspan=2 nowrap valign="top"><font face="Times New Roman, Times, Serif" size=2>Amount
      </font></th>
    <th nowrap valign="top">&nbsp;</th>
    <th colspan=2 nowrap align="right" valign="top"><font face="Times New Roman, Times, Serif" size=2>Earnings
      </font></th>
    <th nowrap valign="top">&nbsp;</th>
    <th colspan=2 nowrap align="right" valign="top"><font face="Times New Roman, Times, Serif" size=2>on
      Investments) </font></th>
    <th nowrap align="right" valign="top">&nbsp;</th>
    <th colspan=2 nowrap align="right" valign="top"><font face="Times New Roman, Times, Serif" size=2>Equity
      </font></th>
    <th nowrap>&nbsp;</th>
  </tr>
  <tr>
    <td colspan=18>
      <hr NOSHADE size=2>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=44% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Balance, </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;January
      1, 2003 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,515,804 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 49,613,044 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3,055,139 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 52,668,184 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      income </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,965,014 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,965,014 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
      ($.12 per share) </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(300,411 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(300,411 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
      of common stock repurchased </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(41,175 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(986,479 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(986,479 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation
      expense related to stock options </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,144 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>51,224 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>51,224 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
      options exercised </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,150 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>414,535 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>414,535 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      unrealized gain on investments </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>376,679 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>376,679 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=18>
      <hr NOSHADE size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Balance, </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December
      31, 2003 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,503,923 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>59,756,927 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,431,818 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>63,188,746 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      income </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,221,604 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,221,604 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
      ($.03 per share) </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(75,187 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(75,187 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
      of common stock repurchased </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(5,823 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(197,150 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(197,150 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation
      expense related to stock options </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>370 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,281 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,281 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
      options exercised </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,345 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>122,814 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>122,814 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      unrealized gain on investments </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>78,015 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>78,015 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=18>
      <hr NOSHADE size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Balance, </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March
      31, 2004 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>2,505,815 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 1 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 61,841,289 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 3,509,833 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 65,351,123 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan=14>
      <hr NOSHADE size=2>
    </td>
    <td>&nbsp;</td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>See notes to consolidated
financial statements.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>



<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 16; page: 16" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>


<A NAME="A004"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investors Title
Company and Subsidiaries<BR>Consolidated Statements of Cash Flows <BR><I>For
the Three Months Ended March 31, 2004 and 2003<BR>(Unaudited)</I> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=2></font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2>2004</font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2><br>
      2003</font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=67% align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Operating
      Activities:</b></font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td width=11% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2></font></b></td>
    <td width=4% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net income</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 2,221,604</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,608,561</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Adjustments
      to reconcile net income to net cash</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided
      by operating activities:</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>229,816</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>198,341</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization,
      net</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>9,500</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,867</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance
      of common stock in payment of bonuses and fees</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>12,281</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,014</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      (benefit) for losses on premiums receivable</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(110,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>75,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      loss on disposals of property</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,128</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      realized gain on sales of investments</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(3,431</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(23,047</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      for deferred income taxes</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>319,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>223,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Changes
      in assets and liabilities:</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in receivables and other assets</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>863,963</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>49,099</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in accounts payable and accrued liabilities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(2,293,743</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,157,921</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in commissions and reinsurance payables</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(335,292</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(102,169</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
      (decrease) in premium taxes payable</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(226,157</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>144,558</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
      in current income taxes payable</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>496,402</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>109,878</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
      for claims</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,844,379</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,083,038</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments
      of claims, net of recoveries</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(1,375,379</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,638,038</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash provided by operating activities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,652,943</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,583,309</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Investing
      Activities:</b></font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Purchases
      of available-for-sale securities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(16,365,855</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,317,518</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Purchases
      of held-to-maturity securities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(1,631</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,035</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Purchases
      of other securities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(211,402</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(486,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Proceeds
      from sales of available-for-sale securities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>14,617,475</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,928,643</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Proceeds
      from sales of held-to-maturity securities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>188,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>205,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Proceeds
      from other securities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,246</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Purchases
      of property</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(94,322</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(190,310</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Proceeds
      from sales of property</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&#151;</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>185</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash provided by (used in) investing activities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(1,867,735</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>142,211</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Financing
      Activities:</b></font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Repurchases
      of common stock</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(197,150</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(174,691</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Exercise
      of options</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>122,814</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>31,886</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Dividends
      paid</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(75,187</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(75,471</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash used in financing activities</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(149,523</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(218,276</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Net Increase
      (Decrease) in Cash and Cash Equivalents</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(364,315</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,507,244</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Cash and
      Cash Equivalents, Beginning of Year</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>5,125,356</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,781,961</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=3><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Cash and
      Cash Equivalents, End of Period</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 4,761,041</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 5,289,205</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=3><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Supplemental
      Disclosures:</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Cash Paid
      During the Year for:</font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Income
      Taxes, net of refunds</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 351,000</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 862,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>See notes to consolidated financial
statements.</I> </FONT> </P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 17; page: 17" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>


<A NAME="A005"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INVESTORS TITLE
COMPANY<BR>AND SUBSIDIARIES<BR> <U>Notes to Consolidated Financial Statements </U></B><BR>March 31,
2004<BR>(Unaudited) </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Note 1 &#150; Basis of
Presentation</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference
should be made to the &#147;Notes to Consolidated Financial Statements&#148; of the
Company&#146;s Annual Report to Shareholders for the year ended December 31, 2003 for a
complete description of the Company&#146;s significant accounting policies. There were no
changes in the significant accounting policies during the three months ended March 31,
2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Principles
of Consolidation </I>&#150; The unaudited consolidated financial statements include the
accounts and operations of Investors Title Company and its subsidiaries (Investors Title
Insurance Company, Northeast Investors Title Insurance Company, Investors Title Exchange
Corporation, Investors Title Accommodation Corporation, Investors Title Management
Services, Inc., Investors Title Commercial Agency, LLC, Investors Capital Management
Company, and Investors Trust Company), and have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission. Accordingly, certain information
and footnote disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States of America have been
condensed or omitted. All intercompany balances and transactions have been eliminated in
consolidation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the opinion of management, all necessary adjustments have been reflected for a fair
presentation of the financial position, results of operations and cash flows in the
accompanying unaudited consolidated financial statements. All such adjustments are of a
normal recurring nature. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Reclassification
&#151; </I>Certain 2003 amounts have been reclassified to conform to 2004 classifications. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Earnings
per share &#150; </I>Basic net income per share information is computed using the weighted
average number of shares of common stock outstanding during the period. Diluted net income
per common share is computed using the weighted average number of shares of common and
dilutive potential common shares outstanding during the period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Recent
Accounting Pronouncements &#150; FIN 46: </I>In January 2003, the FASB issued
Interpretation No. 46, <I>Consolidation of Variable Interest Entities </I>(&#147;FIN
46&#148;). FIN 46 amended Accounting Research Bulletin 51, <I>Consolidated Financial
Statements, </I>and established standards for determining circumstances under which a
variable interest entity (&#147;VIE&#148;) should be consolidated by its primary
beneficiary. FIN 46 also requires disclosures about VIEs that the Company is not required
to consolidate but in which it has a significant variable interest. In December 2003, the
FASB issued FIN 46-R, which not only included amendments to FIN 46, but also required
application of the interpretation to all affected entities no later than March 31, 2004
for calendar-year reporting companies. Prior to FIN 46-R, however, companies were required
to apply the interpretation to special-purpose entities by December 31, 2003. The adoption
of FIN 46-R as it relates to special-purpose entities did not have any effect on the
Company&#146;s results of operations, financial position or liquidity. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 18; page: 18" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>SFAS
150</I>: In May 2003, the FASB issued SFAS No. 150, <I>Accounting for Certain Financial
Instruments with Characteristics of Both Liabilities and Equity</I>. SFAS No. 150
establishes standards for how an issuer classifies and measures certain financial
instruments with characteristics of both liabilities and equity. Many of these instruments
were previously classified as equity. SFAS No. 150 requires that an issuer classify a
financial instrument that is within its scope as a liability, or as an asset in some
circumstances. This Statement applies to three types of freestanding financial
instruments, other than outstanding shares. One type is mandatorily redeemable shares,
which the issuer is obligated to buy back in exchange for cash or assets; a second type
includes put options and forward purchase contracts that require or may require the issuer
to buy back some of its shares in exchange for cash or other assets; the third type is
obligations that can be settled with shares, the monetary value of which is fixed, tied
solely or predominantly to a variable such as a market index, or varies inversely with the
value of the issuer&#146;s shares. SFAS No. 150 does not apply to features embedded in a
financial instrument that is not a derivative in its entirety. SFAS No. 150 is effective
for financial instruments entered into or modified after May 31, 2003, and otherwise is
effective at the beginning of the first interim period beginning after June 15, 2003. The
adoption of this Statement did not have a material impact on the Company&#146;s financial
statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Stock-Based
Compensation &#151;</I> The Company accounts for stock-based compensation based on the
provisions of Accounting Principles Board Opinion No. 25, <I>Accounting for Stock Issued
to Employees </I>(&#147;APB No. 25&#148;), which states that, for fixed plans, no
compensation expense is recorded for stock options or other stock-based awards to
employees that are granted with an exercise price equal to or above the estimated fair
value per share of the Company&#146;s common stock on the grant date. In the event that
stock options are granted with an exercise price below the estimated fair value of the
Company&#146;s common stock at the grant date, the difference between the fair value of
the Company&#146;s common stock and the exercise price of the stock option is recorded as
deferred compensation. Deferred compensation is amortized to compensation expense over the
vesting period of the stock option. The Company has adopted the disclosure requirements of
Statement of Financial Accounting Standards No. 123, <I>Accounting for Stock-Based
Compensation</I>, and Statement of Financial Accounting Standards No. 148, <I>Accounting
for Stock-Based Compensation &#150; Transition and Disclosure &#150; an Amendment to FASB
Statement No. 123, </I>which together require compensation expense to be disclosed based
on the fair value of the options granted at the date of the grant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Had
compensation cost for the Company&#146;s stock option plan been determined based on the
fair value at the grant dates for awards under the plan consistent with the method
required by SFAS No. 123, the Company&#146;s net income and diluted net income per common
share would have been the pro forma amounts indicated in the following table: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 19; page: 19" -->




<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>






<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=2> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=2> </font><font face="Times New Roman, Times, Serif" size=2>For
      the Three Months Ended<br>
      March 31,<br>
       </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=2> </font></th>
    <th colspan=2><b><font face="Times New Roman, Times, Serif" size=2>2004 </font>
      </b>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <td colspan=2 align="center"><font face="Times New Roman, Times, Serif" size=2>2003 </font>
      <hr width=100% size=1 NOSHADE>
    </td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=10% align=LEFT>&nbsp;</td>
    <td width=53% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      income as reported </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td width=12% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>
      2,221,604 </font></b></td>
    <td width=5% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=12% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      2,608,561 </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Less: Total
      stock-based employee </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compensation
      expense determined </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under
      fair value based method for </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
      awards, net of related tax effects </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(37,615 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>)</b> </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(37,913 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2>
      <hr NOSHADE size=1>
    </td>
    <td>&nbsp;</td>
    <td colspan=2>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Pro forma
      net income </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 2,183,989 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,570,648 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2>
      <hr NOSHADE size=2>
    </td>
    <td>&nbsp;</td>
    <td colspan=2>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net income
      per share: </font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><b></b></td>
    <td align=RIGHT><b></b></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
      &#150; as reported </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 0.89 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.04 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic
      &#150; pro forma </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 0.87 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.02 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted
      &#150; as reported </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 0.84 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.00 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted
      &#150; pro forma </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 0.83 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 0.98 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Note 2 &#150; Reserves
for Claims</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions
in the reserves for claims for the three months ended March 31, 2004 and the twelve months
ended December 31, 2003 were as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=2>  </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2>March 31,
      2004  </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <td colspan=2 nowrap align="center"><font face="Times New Roman, Times, Serif" size=2>December
      31, 2003  </font>
      <hr width=100% size=1 NOSHADE>
    </td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=10% align=LEFT>&nbsp;</td>
    <td width=49% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Balance,
      beginning of year  </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$
       </font></b></td>
    <td width=15% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>
      30,031,000  </font></b></td>
    <td width=9% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$
       </font></td>
    <td width=15% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      25,630,000  </font></td>
    <td width=0% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Provision,
      charged to operations  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,844,379
       </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,292,739
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Payments
      of claims, net of recoveries  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(1,375,379
       </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)  </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(4,891,739
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=1 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=1 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Ending balance
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$  </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 30,500,000
       </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 30,031,000
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=2 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=2 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<BR>
<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total reserve for all reported and unreported losses the Company incurred through March
31, 2004 is represented by the reserve for claims. The Company&#146;s reserves for unpaid
losses and loss adjustment expenses are established using estimated amounts required to
settle claims for which notice has been received (reported) and the amount estimated to be
required to satisfy incurred claims of policyholders which may be reported in the future.
Despite the variability of such estimates, management believes that the reserves are
adequate to cover claim losses which might result from pending and future claims. The
Company continually reviews and adjusts its reserve estimates to reflect its loss
experience and any new information that becomes available. Adjustments resulting from such
reviews may be significant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims
and losses paid are charged to the reserves for claims. Although claims losses are
typically paid in cash, occasionally claims are settled by purchasing the interest of the
insured or the claimant in the real property. When this event occurs, the acquiring
company carries assets at the lower of cost or estimated realizable value, net of any
indebtedness on the property. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Note 3 &#150;
Comprehensive Income</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
comprehensive income for the three months ended March 31, 2004 and 2003 was $2,299,619 and
$2,586,671, respectively. Other comprehensive income is comprised solely of unrealized
gains or losses on the Company&#146;s available-for-sale securities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>



<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 20; page: 20" -->


<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Note 4 &#150; Earnings
Per Common Share</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee
stock options are considered outstanding for the diluted earnings per common share
calculation and are computed using the treasury stock method. The total increase in the
weighted average shares outstanding related to these equivalent shares was 132,896 and
96,735 for the three months ended March 31, 2004 and 2003, respectively. Options to
purchase 253,646 and 313,021 shares of common stock were outstanding for the three months
ended March 31, 2004 and 2003, respectively. Of the total options outstanding, 0 and
60,436 options were not included in the computation of diluted earnings per share for the
three months ended March 31, 2004 and 2003, respectively because the options&#146;
exercise prices were greater than the average market price of the common shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Note 5 &#150; Segment
Information</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>





<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th align="left"><font face="Times New Roman, Times, Serif" size=2>Three Months<br>
      Ended </font></th>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2>Operating<br>
      Revenues </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2>Income<br>
      Before<br>
      Income Taxes </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size="2">Assets </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan="11" align=LEFT>
      <hr NOSHADE size=1>
    </td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=22% align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>March
31, 2004</B></U>  </font> </td>
    <td width=1% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=7% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=16% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td width=8% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=16% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td width=9% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=16% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> </font></b></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Title
      Insurance </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 17,186,563 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 3,183,566 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 88,415,497 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Exchange
      Services </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>479,894 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>335,618 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>857,484 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>All Other </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>273,355 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(133,373 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>) </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>11,471,417 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 17,939,812 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 3,385,811 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 100,744,398 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>March 31,
2003</U>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Title Insurance </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 19,991,446 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3,733,657 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 76,812,327 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Exchange
      Services </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>101,089 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(34,880 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>336,577 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>All Other </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>238,283 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>94,029 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,300,998 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 20,330,818 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 3,792,806 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 85,449,902 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
</table>
<BR>
<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
revenues represent net premiums written and other revenues, excluding investment income
and net realized gain on sales of investments. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><u>Note 6 &#150; Commitments
and Contingencies</u> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and its subsidiaries are involved in various legal proceedings that are incidental
to their business. In the Company&#146;s opinion, based on the present status of these
proceedings, any potential liability of the Company or its subsidiaries with respect to
these legal proceedings will not, in the aggregate, be material to the Company&#146;s
consolidated financial condition or operations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 17, 2003, Investors Title Insurance Company entered into employment agreements
with key executives that provide for the continuation of certain employee benefits upon
retirement. The executive employee benefits include health insurance, dental insurance,
vision insurance and life insurance. The plan is unfunded. The following sets forth the
net periodic benefits cost for the executive benefits for the quarter ended March 31,
2004: </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 21; page: 21" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>







<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th>&nbsp;</th>
    <th colspan=3 align="right" nowrap><font face="Times New Roman, Times, Serif" size=2>For
      the Quarter Ended <br>
      March 31, 2004 </font>
      <hr width=73% size=1 NOSHADE align="right">
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=10% align=LEFT>&nbsp;</td>
    <td width=60% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Service
      cost at beginning of quarter </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=9% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$
      </font></b></td>
    <td width=5% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>
      3,513 </font></b></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Interest
      cost for the quarter </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,875
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Amortization
      of Unrecognized Prior Service Cost </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>8,521
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Amortization
      of Unrecognized Gains or Losses </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size="2">&#151;
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=1 NOSHADE align="right">
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net Periodic
      Benefits Costs </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 15,909
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=2 NOSHADE align="right">
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<BR>


<A NAME="A006"></A>
<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Item 2.</B> </FONT> </TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations</U></B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s 2003 Annual Report on Form 10-K and 2003 Annual Report to Shareholders
should be read in conjunction with the following discussion since they contain important
information for evaluating the Company&#146;s operating results and financial condition. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Overview</U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>
Title</I> <I>Insurance:</I> Investors Title Company (the &#147;Company&#148;) engages
primarily in two segments of business. Its main business activity is the issuance of title
insurance through two subsidiaries, Investors Title Insurance Company (&#147;ITIC&#148;)
and Northeast Investors Title Insurance Company (&#147;NE-ITIC&#148;). Through ITIC and
NE-ITIC, the Company underwrites land title insurance for owners and mortgagees as a
primary insurer and as a reinsurer for other title insurance companies. Title insurance
protects against loss or damage resulting from defects that affect the title to real
property. The commitment and policies issued are the standard American Land Title
Association approved forms. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are two basic types of title insurance policies &#151; one for the mortgage lender and one
for the real estate owner. A lender often requires property owners to purchase title
insurance to protect its position as a holder of a mortgage loan, but the lender&#146;s
title insurance policy does not protect the property owner. The property owner has to
purchase a separate owner&#146;s title insurance policy to protect his investment. When
real property is conveyed from one party to another, occasionally there is a hidden defect
in the title or a mistake in a prior deed, will or mortgage that may give a third party a
legal claim against such property. If a claim is made against real property, title
insurance provides a corporate guarantee against insured defects, pays all legal expenses
to eliminate any title defects, pays any claims arising from errors in title examination
and recording, and pays any losses arising from hidden defects in title and defects that
are not of record. Title insurance provides an assurance that the insurance holder&#146;s
ownership and use of such property will be defended promptly against claims, at no cost,
whether or not the claim is valid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s profitability in the land title insurance industry is affected by a number
of factors, including the cost and availability of mortgage funds, the level of real
estate and mortgage refinance activity, the cost of real estate, employment levels, family
income levels and general economic conditions. Generally, real estate activity declines as
a result of higher interest rates or an economic downturn, thus leading to a corresponding
decline in title insurance premiums written and the revenues and profitability of the
Company. The cyclical nature of the land title insurance industry has historically caused
fluctuations in revenues and profitability and it is expected to continue to do so in the
future. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>



<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 22; page: 22" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volume
is also a key factor in the Company&#146;s profitability because the Company has certain
significant fixed costs such as personnel and occupancy expenses associated with
processing and issuing a title insurance policy. These costs do not necessarily increase
or decrease depending on the size and type of the policy issued. Title insurance premiums
are based on the face amount of the policy; therefore, the Company typically makes a
larger profit on policies with a high face amount because, while the premium received from
the policy increases, the cost to issue the policy does not increase substantially.
Similarly, the cancellation of a policy order often negatively impacts the Company&#146;s
profitability since the fixed costs associated with processing the policy are not offset
by the receipt of a premium. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
is facing the challenge of responding to revenue reductions that are expected to continue
in 2004 due to the decline in refinancing activity. Operating results for the quarter
ended March 31, 2004, therefore, should not be viewed as indicative of the Company&#146;s
future operating results. As always, the Company has been monitoring and carefully
managing operating expenses such as salaries, employees benefits and other operational
expenses in light of the expected decline in title insurance revenues. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company strives to offset the cyclical nature of the real estate market by increasing its
market share. This effort includes expanding into new markets primarily by continuing to
develop agency relationships, as well as improving market penetration with existing
offices and agents. In order to maintain and improve profits, the Company endeavors to
identify opportunities to refine operating procedures and to implement programs designed
to reduce expenses. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exchange
Services:</I> The Company&#146;s second segment provides tax-free exchange services
through its subsidiaries, Investors Title Exchange Corporation (&#147;ITEC&#148;) and
Investors Title Accommodation Corporation (&#147;ITAC&#148;). ITEC serves as a qualified
intermediary in &sect;1031 like-kind exchanges of real or personal property. In its role
as qualified intermediary, ITEC coordinates the exchange aspects of the real estate
transaction with the closing agents. ITEC&#146;s duties include drafting standard exchange
documents, holding the exchange funds between the sale of the old property and the
purchase of the new property, and accepting the formal identification of the replacement
property within the required identification period. ITAC serves as exchange accommodation
titleholder in reverse exchanges. As exchange accommodation titleholder, ITAC offers a
vehicle for accommodating a reverse exchange when the taxpayer must acquire replacement
property before selling the relinquished property. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Factors
that influence the title insurance industry will also generally affect the exchange
services industry. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>New
Services:</I> Investors Trust Company (&#147;INTC&#148;), wholly owned by the Company, was
chartered on February 17, 2004 by the North Carolina Commissioner of Banks. INTC will
serve clients throughout North Carolina and neighboring states by providing professional
portfolio management services along with trust services. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Critical Accounting
Policies</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the quarter ended March 31, 2004, the Company made no changes in its critical accounting
policies as previously disclosed in the Company&#146;s Annual Report on Form 10-K for the
year ended December 31, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>



<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 23; page: 23" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>


<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Results
of Operations</u></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the quarter ended March 31, 2004, net premiums written decreased 14% to $16,981,756,
investment income decreased less than 1% to $673,326, revenues decreased 11% to
$18,616,569 and net income decreased 15% to $2,221,604, all compared with the same quarter
in 2003. Net income per basic and diluted common share decreased 14% and 16%,
respectively, to $.89 and $.84, as compared with the same prior year period. For the
quarter ended March 31, 2004, the title insurance segment&#146;s operating revenues
decreased 14% versus the first three months of 2003, while the exchange services
segment&#146;s operating revenues increased significantly for the three months ended March
31, 2004, compared with the same quarter in 2003. See the explanation for the decline in
the title insurance segment&#146;s operating revenues in the following paragraph. The
increase in exchange services revenue was due to an increase in the volume of transactions
and an increase in fee income. We anticipate that this line of business will continue to
grow, although not necessarily at the same rate. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Operating
revenues: </I>Premiums written declined from the prior year due to significantly lower
mortgage refinancing; however, with mortgage rates remaining relatively low, the decline
in premium revenue was offset by ongoing strength in real estate activity. According to
the Freddie Mac Weekly Mortgage Rate Survey, the quarterly average 30-year fixed mortgage
interest rates decreased to an average of 5.60% for the quarter ended March 31, 2004,
compared with 5.84% for the quarter ended March 31, 2003. The volume of business decreased
in the first quarter of 2004 as the number of policies and commitments issued declined to
71,896, a decrease of 26.8% compared with 98,227 in the same period in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shown
below is a schedule of premiums written for the three months ended March 31, 2004 and 2003
in all states in which the Company&#146;s two insurance subsidiaries, Investors Title
Insurance Company and Northeast Investors Title Insurance Company, currently underwrite
insurance: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>



<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3 height="46"><font face="Times New Roman, Times, Serif" size=1></font></th>
    <th colspan=2 height="46"><font face="Times New Roman, Times, Serif" size=2>2004</font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th height="46">&nbsp;</th>
    <td colspan=2 height="46" align="center"><font face="Times New Roman, Times, Serif" size=2>2003</font>
      <hr width=100% size=1 NOSHADE>
    </td>
    <th height="46">&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=10% align=LEFT>&nbsp;</td>
    <td width=30% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Alabama</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$</font></b></td>
    <td width=12% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>
      328,316</font></b></td>
    <td width=5% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=12% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      283,071</font></td>
    <td width=10% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Arkansas</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(108</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>)</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,018</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>District
      of Columbia</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>3,245</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,025</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Florida</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>355,604</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>14,980</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Georgia</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>20,433</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,774</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Illinois</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>263,728</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>312,449</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Indiana</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>30,112</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>87,216</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Kentucky</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>400,030</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>430,354</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Louisiana</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>2,237</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,204</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Maryland</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>334,860</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>411,566</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Michigan</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,222,800</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,894,508</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Minnesota</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>246,360</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>606,998</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Mississippi</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>246,275</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>237,485</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Missouri</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>75,477</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,582</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Nebraska</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>218,924</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>497,932</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>New Jersey</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>7,182</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>17,084</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>New York</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>816,340</font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,413,227</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
</table>
<BR>



<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 24; page: 24" -->


<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>



<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <td width=10% align=LEFT>&nbsp;</td>
    <td width=30% align=LEFT><font face="Times New Roman, Times, Serif" size=2>North
      Carolina </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=9% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=12% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>7,588,636 </font></b></td>
    <td width=5% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=12% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,960,371 </font></td>
    <td width=10% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Ohio </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>7,827 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>24,286 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Pennsylvania </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>574,826 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,568,738 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>South Carolina </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,773,897 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,570,562 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Tennessee </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>710,915 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>917,978 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Virginia </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>1,448,438 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,042,970 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>West Virginia </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>374,928 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>440,311 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Wisconsin </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&#151; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(100 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;<b>Direct
      Premiums</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>17,051,282 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>19,761,589 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Reinsurance
      Assumed </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&#151; </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,585 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Reinsurance
      Ceded </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>(69,526 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>) </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(97,189 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;<b>Net
      Premiums</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 16,981,756 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 19,667,985 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
  </tr>
</table>
<BR>
<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITIC
delivers title insurance coverage through a home office, branch offices, and issuing
agents. In North Carolina, ITIC operates through a home office and 27 branch offices. In
South Carolina and Michigan, ITIC operates through a branch office and issuing agents
located conveniently to customers throughout the state. ITIC also writes title insurance
policies through issuing agents in the District of Columbia and the States of Alabama,
Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Minnesota,
Mississippi, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Pennsylvania,
Tennessee, Virginia, West Virginia and Wisconsin. NE-ITIC currently operates through
agents in the State of New York. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
decline in total premiums written was due to significantly lower mortgage refinancing
activity.  Premiums in North Carolina, the Company&#146;s largest market, increased due
to continued strength in purchase and sale activity and a rate increase related to
insured closing services. The increase in Florida is due primarily to the increase in
agent business.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shown
below is a breakdown of branch and agency premiums for the three months ended March 31: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=2> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2>2004 </font>
      <hr width=40% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2>% </font>
      <hr width=50% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <td colspan=2 align="center"><font face="Times New Roman, Times, serif" size="2">2003 </font>
      <hr width=40% size=1 NOSHADE>
    </td>
    <td align="center"><font face="Times New Roman, Times, serif" size="2"> </font></td>
    <td colspan=2 align="center"><font face="Times New Roman, Times, serif" size="2">% </font>
      <hr width=50% size=1 NOSHADE>
    </td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=10% align=LEFT>&nbsp;</td>
    <td width=15% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Branch </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td width=11% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>
      7,459,411 </font></b></td>
    <td width=5% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=1% align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td width=9% align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;44 </font></b></td>
    <td width=5% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=10% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      7,001,693 </font></td>
    <td width=5% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=9% align=center><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;36 </font></td>
    <td width=8% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Agency </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>9,522,345 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;56 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,666,292 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;64 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td><b></b></td>
    <td colspan=2 align=center>
      <hr width=50% size=1 NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=1>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr width=50% size=1 NOSHADE align="center">
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$ </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 16,981,756 </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></b></td>
    <td align=center><b><font face="Times New Roman, Times, Serif" size=2>100 </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 19,667,985 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>100 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td><b></b></td>
    <td colspan=2 align=center>
      <hr width=50% size=2 NOSHADE>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE size=2>
    </td>
    <td></td>
    <td colspan=2 align=RIGHT>
      <hr width=50% size=2 NOSHADE align="center">
    </td>
    <td></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
premiums written from branch operations increased 7% and 34% for the three months ended
March 31, 2004 and 2003, respectively, as compared with the same period in the prior year.
Of the Company&#146;s twenty-nine branch locations that underwrite title insurance
policies, twenty-seven are located in North Carolina and, as a result, branch net premiums
written primarily represent North Carolina business. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency
net premiums decreased 25% and increased 35% for the three months ended March 31, 2004 and
2003, respectively, as compared with the same period in the prior year. The majority of
the decrease in agency net premiums written in the first quarter 2004 can be contributed
to the general decline in business due to the slowdown in refinancing activity. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>



<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 25; page: 25" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Expenses:
</I>Total operating expenses decreased 12% for the three-month period ended March 31, 2004
compared with the same period in 2003. This decrease was due primarily to a decline in
premium volume. A summary by segment of the Company&#146;s operating expenses is as
follows for the three months ended March 31: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=2>  </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=2>2004  </font>
      <hr width=40% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th>&nbsp;</th>
    <th><font face="Times New Roman, Times, Serif" size=2>%  </font>
      <hr width=50% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <td colspan=2 align="center"><font face="Times New Roman, Times, serif" size="2">2003
       </font>
      <hr width=40% size=1 NOSHADE>
    </td>
    <td align="center"><font face="Times New Roman, Times, serif" size="2">  </font></td>
    <td align="center">&nbsp;</td>
    <td align="center"><font face="Times New Roman, Times, serif" size="2">%  </font>
      <hr width=50% size=1 NOSHADE>
    </td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=35% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Title
      insurance  </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=6% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$
       </font></b></td>
    <td width=10% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>
      14,526,343  </font></b></td>
    <td width=7% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td width=1% align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td width=8% align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;95
       </font></b></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$
       </font></td>
    <td width=10% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      16,819,102  </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=9% align=center><font face="Times New Roman, Times, Serif" size=2>&nbsp;98
       </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Exchange
      services  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>145,478
       </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;1
       </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>136,562
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;-
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>All other
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>558,937
       </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=center><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;4
       </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>279,973
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;2
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=1 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=center>
      <hr width=50% size=1 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=1 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=center>
      <hr width=50% size=1 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>$  </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> 15,230,758
       </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></b></td>
    <td align=center><b><font face="Times New Roman, Times, Serif" size=2>100
       </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 17,235,637
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>100  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=2 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=center>
      <hr width=50% size=2 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT colspan="2">
      <hr width=100% size=2 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=center>
      <hr width=50% size=2 NOSHADE>
    </td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissions
decreased 25% in the first quarter 2004 when compared with the quarter ended March 31,
2003. This decrease is in direct proportion to the decline in agency premiums written. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>
</I>The provision for claims as a percentage of net premiums written was 10.86% for the
three months ended March 31, 2004, versus 10.59% for the same period in 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
a consolidated basis, salaries, employee benefits and payroll taxes as a percentage of net
premiums written were 22.7% and 18% for the three months ended March 31, 2004 and 2003,
respectively. The title insurance segment&#146;s total salaries, employee benefits and
payroll taxes accounted for 89% and 93% of the total consolidated amount for the three
months ended March 31, 2004 and 2003, respectively. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall
office occupancy and operations as a percentage of net premiums was 7.1% and 5.6% for the
three months ended March 31, 2004 and 2003, respectively. The increase in office occupancy
and operations expense was primarily due to an increase in depreciation expense, general
insurance expense, contract labor and office supplies. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional
fees increased primarily due to the costs associated with compliance with Section 404 of
the Sarbanes-Oxley Act of 2002. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Liquidity and Capital
Resources</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Cash
flows: Net</I> cash provided by operating activities for the three months ended March 31,
2004, amounted to $1,652,943 compared with $1,583,309 for the same three-month period of
2003. The increase is primarily the result of the accelerated collection of accounts
receivable compared with the first quarter of 2003, offset by a reduction in net income. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Payment
of dividends: The</I> Company&#146;s ability to pay dividends and operating expenses is
dependent on funds received from the insurance subsidiaries, which are subject to
regulation in the states in which they do business. These regulations, among other things,
require prior regulatory approval of the payment of dividends and other intercompany
transfers. The Company believes, however, that amounts available for transfer from the
insurance subsidiaries are adequate to meet the Company&#146;s operating needs. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liquidity:
</I>Management believes that funds generated from operations (primarily underwriting and
investment income) will enable the Company to adequately meet its cash needs and is
unaware of any trend or occurrence that is likely to result in adverse liquidity changes.
In addition to operational liquidity, the Company maintains a high degree of liquidity
within its investment portfolio in the form of short-term investments and other readily
marketable securities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 26; page: 26" -->



<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Capital
Expenditures: </I>During 2004, the Company has plans for various capital improvement
projects, including an upgrade of certain electronic data processing systems. The Company
anticipates capital expenditures in excess of $500,000 in connection with these projects. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Safe Harbor Statement</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Quarterly Report on Form 10-Q, as well as information included in future filings by the
Company with the Securities and Exchange Commission and information contained in written
material, press releases and oral statements issued by or on behalf of the Company,
contains, or may contain, forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that reflect management&#146;s current outlook
for future periods. These statements may be identified by the use of words such as
&#147;plan,&#148; &#147;expect,&#148; &#147;aim,&#148; &#147;believe,&#148;
&#147;project,&#148; &#147;anticipate,&#148; &#147;intend,&#148; &#147;estimate,&#148;
&#147;will,&#148; &#147;should,&#148; &#147;could&#148; and other expressions that
indicate future events and trends. All statements that address expectations or projections
about the future, including statements about the Company&#146;s strategy for growth,
product and service development, market position, claims, expenditures and financial
results, are forward-looking statements. Forward-looking statements are based on certain
assumptions and expectations of future events that are subject to risks and uncertainties.
Actual future results and trends may differ materially from historical results or those
projected in any such forward-looking statements depending on a variety of factors,
including, but not limited to, the following: (1) the demand for title insurance will vary
due to factors such as changes in mortgage interest rates, availability of mortgage funds,
level of real estate activity, cost of real estate, consumer confidence, supply and demand
for real estate, inflation and general economic conditions; (2) losses from claims may be
greater than anticipated such that reserves for possible claims are inadequate; (3)
unanticipated adverse changes in securities markets could result in material losses on the
Company&#146;s investments; (4) the Company&#146;s dependence on key management personnel,
the loss of whom could have a material adverse effect on the Company&#146;s business; (5)
the Company&#146;s ability to develop and offer products and services that meet changing
industry standards in a timely and cost-effective manner; (6) the costs of producing title
evidence are relatively high, whereas premium revenues are subject to regulatory and
competitive restraints; and (7) state statutes require the Company&#146;s insurance
subsidiaries to maintain minimum levels of capital and surplus and restrict the amount of
dividends that the insurance subsidiaries may pay to the Company without prior regulatory
approval. Other risks and uncertainties may be described from time to time in the
Company&#146;s other reports and filings with the Securities and Exchange Commission. </FONT></P>

<A NAME="A007"></A>
<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Item 3.&nbsp;&nbsp; <U>Quantitative and
Qualitative Disclosures About Market Risk</U></B> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
material changes in the Company&#146;s market risk or market strategy occurred during the
current period. A detailed discussion of market risk is provided in the Company&#146;s
2003 Annual Report on Form 10-K for the period ended December 31, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>



<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 27; page: 27" -->


<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<A NAME="A008"></A>
<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Item 4. <U>Controls and
Procedures</U></B> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s disclosure controls and procedures are designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits under the
Securities Exchange Act of 1934 (the &#147;Act&#148;) was recorded, processed, summarized
and reported within the time periods specified by the Securities and Exchange
Commission&#146;s rules and forms. An evaluation was performed under the supervision and
with the participation of the Company&#146;s management, including its Chief Executive
Officer and Chief Financial Officer, of the effectiveness of the design and operation of
the Company&#146;s disclosure controls and procedures pursuant to Rule 13a-14(c) under the
Act. Based on that evaluation, the Company&#146;s Chief Executive Officer and Chief
Financial Officer concluded that the Company&#146;s disclosure controls and procedures
were effective as of March 31, 2004. In reaching this conclusion, the Company&#146;s Chief
Executive Officer and Chief Financial Officer determined that the Company&#146;s
disclosure controls and procedures were effective in ensuring that such information was
accumulated and communicated to the Company&#146;s management as appropriate to allow
timely decisions regarding required disclosure. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the first quarter 2004, there was no change in the Company&#146;s internal control over
financial reporting identified in connection with the above-referenced evaluation that has
materially affected, or is reasonably likely to materially affect, the Company&#146;s
internal control over financial reporting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II.&nbsp; OTHER
INFORMATION </FONT></H1>


<A NAME="A009"></A>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Item 2.&nbsp;&nbsp; <U>Changes in Securities, Use
of Proceeds and Issuer Purchases of Equity Securities</U></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
following table provides information about purchases by the Company (and all
          affiliated purchasers) during the quarter ended March 31, 2004 of equity
          securities that are registered by the Company pursuant to Section 12 of the
          Exchange Act: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Issuer Purchases of
Equity Securities</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>









<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th align="left"><font face="Times New Roman, Times, Serif" size=2>Period
      </font>
      <hr width=48% size=1 NOSHADE align="left">
    </th>
    <th>&nbsp;</th>
    <th nowrap><font face="Times New Roman, Times, Serif" size=2>Total Number
      of<br>
      Shares Purchased </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th nowrap>&nbsp;</th>
    <th nowrap><font face="Times New Roman, Times, Serif" size=2>Average Price<br>
      Paid per Share </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap><font face="Times New Roman, Times, Serif" size=2>Total
      Number of<br>
      Shares Purchased as<br>
      Part of Publicly<br>
      Announced Plan </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th nowrap>&nbsp;</th>
    <th colspan=2 nowrap><font face="Times New Roman, Times, Serif" size=2>Maximum<br>
      Number of Shares<br>
      that May Yet Be<br>
      Purchased Under<br>
      the Plan </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=15% align=LEFT nowrap>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
    <td width=8% align=LEFT>&nbsp;</td>
    <td width=4% align=RIGHT>&nbsp;</td>
    <td width=8% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=9% align=RIGHT>&nbsp;</td>
    <td width=8% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=9% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">01/01/04
&#150; <U>01/31/04</U> </FONT> </td>
    <td width=7% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=9% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td width=8% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td width=8% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=9% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      </font></td>
    <td width=8% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
    <td width=9% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>407,507
      </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">02/01/04
&#150; <U>02/29/04</U> </FONT> </td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,844 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> $&nbsp;&nbsp;34.03
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,844 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>405,663
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/01/04
&#150; <U>03/31/04</U> </FONT> </td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,979 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> $&nbsp;&nbsp;33.78
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,979 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>401,684
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr width=40% size=1 NOSHADE align="right">
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>
      <hr width=40% size=1 NOSHADE align="right">
    </td>
    <td align=LEFT>&nbsp; </td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>Total:
      </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>5,823
      </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2> $&nbsp;33.86
      </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>5,823
      </font></b></td>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;
      </font></b></td>
    <td align=RIGHT><b><font face="Times New Roman, Times, Serif" size=2>401,684
      </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>
      <hr width=40% size=2 NOSHADE align="right">
    </td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>
      <hr width=40% size=2 NOSHADE align="right">
    </td>
    <td align=LEFT>&nbsp; </td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITIC
purchased an aggregate of 5,823 shares of the Company&#146;s common stock
          pursuant to the purchase plan (the &#147;Plan&#148;) that was publicly
          announced on June 5, 2000. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 28; page: 28" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Board of Directors of ITIC approved the purchase by ITIC of up to an
          aggregate of 500,000 shares of the Company&#146;s common stock pursuant to the
          Plan. Unless terminated earlier by resolution of the Board of Directors of
ITIC,           the Plan will expire when ITIC has purchased all shares authorized for
          purchase thereunder. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITIC
intends to make further purchases under this Plan. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>


<A NAME="A0010"></A>
<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 6.&nbsp;&nbsp; <U>Exhibits and
Reports on Form 8-K</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibits </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<table width=600 cellpadding=0 cellspacing=0 border=0>
  <tr valign=TOP>
    <td width=5%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=10%><font face="Times New Roman, Times, Serif" size=2>31(i) </font></td>
    <td width=85%><font face="Times New Roman, Times, Serif" size=2>Certification
      of Chief Executive Officer pursuant to Section 302 of the <BR>Sarbanes-Oxley
      Act of 2002 </font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31(ii) </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Chief Financial Officer pursuant to Section 302 of the           <BR>Sarbanes-Oxley Act of
2002 </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32 </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification
of Chief Executive Officer and Chief Financial Officer pursuant to <BR>Section 906 of the
Sarbanes-Oxley Act of 2002</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reports
on Form 8-K </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March 5, 2004, the Company filed a report on Form 8-K reporting under Item 5 that on
March 2, 2004, the Company issued a press release announcing that Investors Trust
Company, a wholly owned subsidiary of the Company, had received its charter from the
North Carolina Commissioner of Banks.  </FONT>
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 29; page: 29" -->


<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>


<A NAME="A011"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Project" -->
<table width=600 cellspacing=0 cellpadding=0 border=0>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=10%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=50%><font face="Times New Roman, Times, Serif" size=2>INVESTORS
      TITLE COMPANY<br>
      <br>
      <br>
      By:&nbsp;&nbsp; /s/ James A. Fine, Jr.<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James A. Fine, Jr.<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President, Principal
      Financial Officer and<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal Accounting
      Officer</font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: May 14, 2004 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>



</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>d59587_ex31-i.htm
<DESCRIPTION>EXHIBIT 31(I)
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.5ac) -->
     <!-- Project:        X:\JOBS\04-59587\d04-59587.eep                                   -->
     <!-- Control Number: 04-59587                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>EX-31.(i)</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>




<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><u>Exhibit 31(i)</u></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, J. Allen Fine, certify that: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I
have reviewed this quarterly report on Form 10-Q of Investors Title Company; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Based
on my knowledge, this report does not contain any untrue statement of a
          material fact or omit to state a material fact necessary to make the statements
          made, in light of the circumstances under which such statements were made, not
          misleading with respect to the period covered by this report; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Based
on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the registrant as of, and
          for, the periods presented in this report; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;s other certifying officer and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a)&nbsp;&nbsp;&nbsp;
                     designed such disclosure controls and procedures, or caused such
disclosure                     controls and procedures to be designed under our
supervision, to ensure that                     material information relating to the
registrant, including its consolidated                     subsidiaries, is made known to
us by others within those entities, particularly                     during the period in
which this report is being prepared; </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
b)&nbsp;&nbsp;&nbsp;
                     {Reserved}  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c)&nbsp;&nbsp;&nbsp;
                     evaluated the effectiveness of the registrant&#146;s disclosure controls and
                    presented in this report our conclusions about the effectiveness of the
                    disclosure controls and procedures, as of the end of the period covered by this
                    report based on such evaluation; and </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>d)&nbsp;&nbsp;&nbsp;
                     disclosed in this report any change in the registrant&#146;s internal control
                    over financial reporting that occurred during the registrant&#146;s most recent
                    fiscal quarter that has materially affected, or is reasonably likely to
                    materially affect the registrant&#146;s internal control over financial
                    reporting; and </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;s other certifying officer and I have disclosed, based on           our
most recent evaluation of internal control over financial reporting, to the
          registrant&#146;s auditors and the audit committee of the registrant&#146;s
          board of directors (or persons performing the equivalent functions): </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a)&nbsp;&nbsp;&nbsp;
                     all significant deficiencies and material weaknesses in the design or operation
                    of internal control over financial reporting which are reasonably likely to
                    adversely affect the registrant&#146;s ability to record, process, summarize and
                    report financial information; and </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) &nbsp;&nbsp;&nbsp;
                     any fraud, whether or not material, that involves management or other employees
                    who have a significant role in the registrant&#146;s internal control over
                    financial reporting. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: May 14, 2004 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ J. Allen Fine<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; <BR>J. Allen
Fine<BR>Chief Executive Officer </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>d59587_ex31-ii.htm
<DESCRIPTION>EXHIBIT 31(II)
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.5ac) -->
     <!-- Project:        X:\JOBS\04-59587\d04-59587.eep                                   -->
     <!-- Control Number: 04-59587                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>EX-31.(ii)</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 31(ii)</U></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, James A. Fine, Jr., certify that: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I
have reviewed this quarterly report on Form 10-Q of Investors Title Company; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Based
on my knowledge, this report does not contain any untrue statement of a
          material fact or omit to state a material fact necessary to make the statements
          made, in light of the circumstances under which such statements were made, not
          misleading with respect to the period covered by this report; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Based
on my knowledge, the financial statements, and other financial information
          included in this report, fairly present in all material respects the financial
          condition, results of operations and cash flows of the registrant as of, and
          for, the periods presented in this report; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;s other certifying officer and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we have: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a)&nbsp;&nbsp;&nbsp;
                     designed such disclosure controls and procedures, or caused such
disclosure                     controls and procedures to be designed under our
supervision, to ensure that                     material information relating to the
registrant, including its consolidated                     subsidiaries, is made known to
us by others within those entities, particularly                     during the period in
which this report is being prepared;  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
b)&nbsp;&nbsp;&nbsp;                     {Reserved} </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
c)
&nbsp;&nbsp;&nbsp;                     evaluated the effectiveness of the registrant&#146;s
disclosure controls and                     presented in this report our conclusions
about the effectiveness of the                     disclosure controls and procedures, as
of the end of the period covered by this                     report based on such
evaluation; and  </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
d)&nbsp;&nbsp;&nbsp;disclosed
in this report any change in the registrant&#146;s internal control
                    over financial reporting that occurred during the registrant&#146;s
most recent                     fiscal quarter that has materially affected, or is
reasonably likely to                     materially affect the registrant&#146;s internal
control over financial                     reporting; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
registrant&#146;s other certifying officer and I have disclosed, based on           our
most recent evaluation of internal control over financial reporting, to the
          registrant&#146;s auditors and the audit committee of the registrant&#146;s
          board of directors (or persons performing the equivalent functions): </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a)&nbsp;&nbsp;&nbsp;
all significant deficiencies and material weaknesses in the design or operation
                    of internal control over financial reporting which are reasonably
likely to                     adversely affect the registrant&#146;s ability to record,
process, summarize and                     report financial information; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
b)&nbsp;&nbsp;&nbsp;       any
fraud, whether or not material, that involves management or other employees
                    who have a significant role in the registrant&#146;s internal control
over                     financial reporting. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: May 14, 2004 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ James A. Fine, Jr.<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>James
A. Fine, Jr.<BR>Chief Financial Officer </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>d59587_ex-32.htm
<DESCRIPTION>EXHIBIT 32
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.5ac) -->
     <!-- Project:        X:\JOBS\04-59587\d04-59587.eep                                   -->
     <!-- Control Number: 04-59587                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Investors Title Company.                                         -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Business Wire                                                    -->
     <TITLE>EX-32</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>
<BR>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Exhibit 32</U></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification <BR>Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002<BR> (Subsections (a) and (b) of
Section 1350, Chapter 63 of Title 18, United States Code)</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, United States Code), each of the undersigned officers of Investors
Title Company, a North Carolina corporation (the &#147;Company&#148;), does hereby certify
that: </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 (the &#147;Form
10-Q&#148;) of the Company fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly
presents, in all material respects, the financial condition and results of operations of
the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>
<BR>

<table width=600 cellspacing=0 cellpadding=0 border=0>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2>Dated: May
      14, 2004</font></td>
    <td width=10%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=50%><font face="Times New Roman, Times, Serif" size=2>/s/ J. Allen
      Fine<br>
      &#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
      J. Allen Fine<br>
      Chief Executive Officer</font></td>
  </tr>
  <tr valign=TOP>
    <td width=40%>&nbsp;</td>
    <td width=10%>&nbsp;</td>
    <td width=50%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=40%>&nbsp;</td>
    <td width=10%>&nbsp;</td>
    <td width=50%>&nbsp;</td>
  </tr>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2>Dated: May
      14, 2004</font></td>
    <td width=10%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=50%><font face="Times New Roman, Times, Serif" size=2>/s/&nbsp;James
      A. Fine, Jr.<br>
      &#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
      James A. Fine, Jr.<br>
      Chief Financial Officer</font></td>
  </tr>
  <tr valign=TOP>
    <td width=40%>&nbsp;</td>
    <td width=10%>&nbsp;</td>
    <td width=50%>&nbsp;</td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>
</TD>
</TR>
</TABLE>
<BR>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
