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<SEC-DOCUMENT>0001157523-04-003506.txt : 20040421
<SEC-HEADER>0001157523-04-003506.hdr.sgml : 20040421
<ACCEPTANCE-DATETIME>20040421084656
ACCESSION NUMBER:		0001157523-04-003506
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040419
FILED AS OF DATE:		20040421
EFFECTIVENESS DATE:		20040421

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:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11774
		FILM NUMBER:		04744197

	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>DEF 14A
<SEQUENCE>1
<FILENAME>d59298_def-14a.htm
<DESCRIPTION>INVESTORS TITLE DEF14A
<TEXT>
<HTML>
<HEAD>
<TITLE>Form Type: DEF 14A</TITLE>
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     <!-- Control Number: a4618811                                                         -->
     <!-- Rev Number:                                                                      -->
     <!-- Client Name:    Investors Title                                                  -->
     <!-- Project Name:   Investors Title DEF14A                                           -->
     <!-- Firm Name:      Business Wire                                                    -->
</HEAD>

<BODY><TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD><BR>
<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>SCHEDULE 14A INFORMATION</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2><B>Proxy Statement Pursuant to Section 14(a) of the
 Securities Exchange Act of 1934 <BR>(Amendment No.&nbsp;&nbsp;&nbsp;)</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->

<P><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Filed by the Registrant |X|<BR>Filed by a Party other
 than the Registrant |_|<BR>Check the appropriate box:<BR>|_|&nbsp;&nbsp;Preliminary Proxy Statement<BR>|_|&nbsp;&nbsp;<B>Confidential,
 For Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B><BR>|X|&nbsp;&nbsp;Definitive Proxy
 Statement<BR>|_|&nbsp;&nbsp;Definitive Additional Materials<BR>|_|&nbsp;&nbsp;Soliciting Material Pursuant
 to &#167; 240.14a-12</FONT></P>
</TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD>
<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=3><B>Investors Title Company</B></FONT> <BR><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>(Name of Registrant as Specified In Its Charter)</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>(Name of
 Person(s) Filing Proxy Statement, if other than the Registrant) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->

<P><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Payment of Filing Fee (Check the appropriate box):
 </FONT></P>

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</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>|X| </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="94%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>No fee required.</FONT></TD></TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>|_| </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="94%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.</FONT></TD></TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(1) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Title of each class of securities to which transaction applies:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(2) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Aggregate number of securities to which transaction applies:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(3) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(4) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Proposed maximum aggregate value of transaction:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(5) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Total fee paid:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>|_| </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="94%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Fee paid previously with preliminary materials:</FONT></TD></TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>|_| </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="94%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</FONT></TD></TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(1) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Amount Previously Paid:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>


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<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(2) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Form, Schedule or Registration Statement No.:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(3) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Filing Party:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=top>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>(4) </FONT></TD>
<TD width="3%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></TD>
<TD width="91%"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Date Filed:<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</FONT></TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD>
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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
<!-- *************************************************************************** -->
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<TD><BR>
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<P><FONT face="Times New Roman, Times, Serif" size=2><B>Investors Title Company</B><BR>121 North Columbia
 Street, Chapel Hill, North Carolina 27514<BR>(919) 968-2200 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>April 19, 2004 </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Dear Shareholders: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>You are cordially invited to attend the Annual Meeting
 of Shareholders to be held at the Siena Hotel, 1505 East Franklin Street, Chapel Hill, North Carolina
 on Wednesday, May 19, 2004 at 11:00 A.M. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>The Annual Meeting will begin with a review of the
 activities of the Company for the past year and a report on current operations during the first quarter
 of 2004, followed by discussion and voting on the matters set forth in the accompanying Notice of Annual
 Meeting and Proxy Statement. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>The Board of Directors unanimously recommends that
 you vote &#147;FOR&#148; election of the directors nominated to serve until the Annual Meeting of Shareholders
 in 2007.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>Most shareholders have a choice of voting by telephone,
 on the Internet, or by mail using the enclosed proxy card. I urge you to review the Proxy Statement
 and promptly vote using one of the methods available to you.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>If you attend the meeting, you may, of course, choose
 to revoke your proxy and personally cast your vote. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Cordially, </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine <BR>Chief Executive Officer </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT>&nbsp;</P>

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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
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<TD><BR>
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<P><FONT face="Times New Roman, Times, Serif" size=2><B>Investors Title Company</B><BR>121 North Columbia
 Street, Chapel Hill, North Carolina 27514<BR>(919) 968-2200 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS <BR>TO BE HELD ON MAY 19, 2004 </FONT></H1>
<BR><BR>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>The Annual Meeting of the Shareholders of Investors
 Title Company will be held at the Siena Hotel, 1505 East Franklin Street, Chapel Hill, North Carolina,
 on Wednesday, May 19, 2004 at 11:00 A.M. E.D.T., for the following purposes: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;To elect three directors for three-year terms
 or until their successors are elected and qualified; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp;To consider any other business that may properly
 come before the meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>Shareholders of record of Common Stock of the Company
 at the close of business on March 22, 2004 are entitled to vote at the meeting and any adjournments
 thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>By Order of the Board of Directors: </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>W. Morris Fine<BR>Secretary </FONT></P>
<BR><BR>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>IMPORTANT &#151; Your proxy card is enclosed. You can
 vote your shares by completing and returning your proxy card in the enclosed postage-paid envelope.
 Most shareholders also have the choice of voting by telephone or on the Internet.</B> If the telephone
 or Internet options are available to you, voting instructions have been included with your proxy materials.
 Whether or not you expect to be present at the meeting, please review the Proxy Statement and promptly
 vote in order to assist the Company in keeping down the expenses of the meeting. <B>You may revoke your
 proxy and vote in person if you do attend the meeting.</B> </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT>&nbsp;</P>

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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD><BR>
<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>TABLE OF CONTENTS </FONT></H1>
<BR>
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</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2><B>Page</B> </FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=1></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="95%"><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A001">PROXY STATEMENT</A></B> </FONT></TD>
<TD align=right width="5%"><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A002">Proxy Solicitation by the Board of Directors</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A003">Revocability of Proxy</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A004">Voting Securities</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A005">Annual Report to Shareholders</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A006">Other Matters To Come Before the Meeting</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A007">Electronic Delivery of Proxy Materials</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A008">Section 16(a) Beneficial Ownership Reporting Compliance</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&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;
<A href="#A009">General Information</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A010">CORPORATE GOVERNANCE</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>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;
<A href="#A011">Code of Business Conduct and Ethics</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>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;
<A href="#A012">Executive Sessions</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>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;
<A href="#A013">Communication with Directors</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>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;
<A href="#A014">Director Qualification Standards</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>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;
<A href="#A015">Independent Directors</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3&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;
<A href="#A016">Compensation Committee Interlocks and Insider Participation</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3&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;
<A href="#A017">Audit Committee Financial Experts</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3&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;
<A href="#A018">Board of Directors and Committees</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3&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;
<A href="#A019">Compensation of Directors</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>4&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;
<A href="#A020">Stock Ownership of Executive Officers and Certain Beneficial Owners</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>4&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A021">PROPOSALS REQUIRING YOUR VOTE: ELECTION OF DIRECTORS</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>6&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;
<A href="#A022">Information Regarding Nominees for Election as Directors</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>6&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;
<A href="#A023">Information Regarding Directors Continuing in Office</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A024">INDEPENDENT AUDITOR</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>8&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;
<A href="#A025">Audit and Non-Audit Fees</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>8&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;
<A href="#A026">Audit and Non-Audit Services Pre-Approval Policy</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>8&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;
<A href="#A027">Audit Committee Report</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>9&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A028">EXECUTIVE COMPENSATION</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10&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;
<A href="#A029">Summary Compensation Table</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10&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;
<A href="#A030">Stock Option Grants in 2003</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10&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;
<A href="#A031">Aggregated Option Exercises in 2003 and Year-End Option Values</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A032">COMPENSATION COMMITTEE REPORT</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11&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;
<A href="#A033">Overview of Compensation Program</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11&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;
<A href="#A034">Evaluation of Executive Performance</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11&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;
<A href="#A035">Total Compensation</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11&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;
<A href="#A036">Salaries</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11&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;
<A href="#A037">Annual Incentive Awards</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11&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;
<A href="#A038">Stock Options</A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A039">PERFORMANCE GRAPH</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>12&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A040">EQUITY COMPENSATION PLAN INFORMATION</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>12&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A041">EXECUTIVE EMPLOYMENT AGREEMENTS</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>13&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3><B>
<A href="#A042">SHAREHOLDER PROPOSALS FOR 2005 ANNUAL MEETING</A></B> </FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>13&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=3>
<A href="#A043"><B>APPENDIXES</B></A></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>A-1</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;Audit Committee Charter</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>A-1</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;Board of Directors Standard Committee Charter Provisions</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>A-5</FONT></TD></TR>
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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A001>PROXY STATEMENT</A> </FONT></H1>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>Annual Meeting of Shareholders <BR>To Be Held on May 19, 2004 </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
 Proxy Statement is furnished in connection with the solicitation by the Board of Directors of Investors
 Title Company of proxies to be voted at the Annual Shareholders&#146; Meeting to be held at the Siena Hotel,
 1505 East Franklin Street, Chapel Hill, North Carolina, on May 19, 2004 at 11:00 A.M. E.D.T., and at
 all adjournments thereof. Shareholders of record at the close of business on March 22, 2004 are entitled
 to notice of and to vote at the meeting and any adjournments thereof. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A002>Proxy Solicitation by the Board of Directors</A></B>. The solicitation of proxies is made
 on behalf of the Board of Directors and will be made either by mail or, as described below, by electronic
 delivery. The cost of solicitation of proxies will be borne by the Company. Copies of proxy materials
 and of the Annual Report for 2003 will be provided to brokers, dealers, banks and voting trustees or
 their nominees for the purpose of soliciting proxies from the beneficial owners, and the Company will
 reimburse these record holders for their out-of-pocket expenses. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A003>Revocability of Proxy</A></B>. Each proxy executed and returned by a shareholder may be
 revoked at any time thereafter except as to any matter or matters upon which, prior to such revocation,
 a vote shall have been cast pursuant to the authority conferred by such proxy. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A004>Voting Securities</A></B>. On March 19, 2004, the Company had a total of 2,855,744 shares
 of Common Stock outstanding, its only class of issued and outstanding capital stock. Of these shares,
 2,506,115 shares are entitled to one vote per share and 349,629 shares are held by a subsidiary of the
 Company and, pursuant to North Carolina law, are not entitled to vote. A majority of the shares entitled
 to vote at the meeting, represented at the meeting in person or by proxy, will constitute a quorum.
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A005>Annual Report to Shareholders</A></B>. An Annual Report of the Company for the calendar
 year 2003 including financial statements and auditors&#146; opinion, along with this Proxy Statement and
 proxy card, are being first mailed to the Company&#146;s shareholders on or about April 19, 2004. </FONT>
</P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A006>Other Matters To Come Before the Meeting</A></B>. Management is not aware of any other
 matters that may come before the meeting. However, if any other matters do properly come before the
 meeting, it is the intention of the persons named as proxies to vote upon them in accordance with their
 best judgment. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A007>Electronic Delivery of Proxy Materials</A></B>. The Notice of Annual Meeting and Proxy
 Statement and the Company&#146;s 2003 Annual Report (the proxy materials) are available online to certain
 shareholders that have arranged through their broker to receive the proxy materials electronically.
 Shareholders that hold their shares in a brokerage account may have the opportunity to receive future
 proxy materials electronically. Please contact your broker for information regarding the availability
 of this service. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A008>Section 16(a) Beneficial Ownership Reporting Compliance</A></B>. Section 16(a) of the Securities
 Exchange Act of 1934 requires the Company&#146;s executive officers and directors to file reports of holdings
 and transactions in Company securities with the Securities and Exchange Commission and NASDAQ. Based
 on our records and written representations furnished to the Company, the Company believes that its executive
 officers and directors filed on a timely basis the reports required to be filed under Section 16(a)
 of the Securities Exchange Act of 1934 during the year ended December 31, 2003. </FONT></P>
<BR>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>

<A name=A009>General Information</A></B>. A copy of the Company&#146;s 2003 Annual Report and Form 10-K filed
 with the Securities and Exchange Commission, excluding exhibits, can be obtained without charge by writing
 to the Assistant Secretary of the Company, 121 North Columbia Street, Chapel Hill, North Carolina 27514.
 </FONT></P>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A010>GOVERNANCE OF THE COMPANY</A> </FONT></H1>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A011>Code of Business Conduct and Ethics</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company has adopted a Code of Business Conduct and Ethics that is applicable to all of the Company&#146;s
 employees, officers and directors, including its Chief Executive Officer, Chief Financial Officer and
 Chief Accounting Officer. This Code addresses a variety of issues, including the protection of confidential
 information, insider trading, and employment practices. It also requires strict compliance with all
 laws, rules and regulations governing the conduct of the Company&#146;s business. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Code of Business Conduct and Ethics is posted in the Investor section of the Company&#146;s website at www.invtitle.com
 under the caption &#147;Corporate Governance.&#148; The Company intends to disclose future amendments to or waivers
 from the Code of Business Conduct and Ethics on its website within two business days after such amendment
 or waiver. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A012>Executive Sessions </A></FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive
 sessions that include only the non-management members of the Board of Directors are held regularly to
 review the criteria upon which the performance of the CEO and executive management is based, the performance
 of the CEO and executive management against such criteria, the compensation of the CEO and executive
 management, and to discuss any other matters the non-management directors deem relevant. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A013>Communication with Directors</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
 can communicate with members of the Company&#146;s Board of Directors in one of two ways. Shareholders may
 mail correspondence to the attention of the Secretary, P.O. Drawer 2687, Chapel Hill, North Carolina
 27515-2687. Any correspondence sent via mail should clearly indicate that it is a communication intended
 for the Board of Directors. Shareholders may also email the Board of Directors at boardofdirectors@invtitle.com.
 The Office of the Corporate Secretary will regularly monitor this email account. Any communication that
 is intended for a particular Board member or committee should clearly state the intended recipient.
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Office of the Corporate Secretary will review all communications sent to the Board of Directors via
 mail and email and will forward all communications concerning Company or Board matters to the Board
 members within five business days of receipt. If a communication is directed to a particular Board member
 or committee, it will be passed on only to that member or the members of that committee; otherwise,
 relevant communications will be forwarded to all Board members. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A014>Director Qualification Standards</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Nominating Committee considers a variety of factors before recommending potential new Board members
 or the continued service of existing Board members. At a minimum, the Nominating Committee believes
 that a director nominee must demonstrate character and integrity, have an inquiring mind, possess substantial
 experience at a strategy or policy setting level, demonstrate an ability to work effectively with others,
 possess high-level managerial experience in a relatively complex organization or experience dealing
 with complex problems, have sufficient time to devote to the affairs of the Company and be free from
 conflicts of interest with the Company and its subsidiaries. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
 factors the Nominating Committee considers when evaluating a director nominee are: </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Whether
 the nominee assists in achieving a diverse mix of Board members; </FONT></P>
<BR>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The
 extent of the nominee&#146;s business experience, technical expertise, and specialized skills or experience;
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Whether
 the nominee, by virtue of particular experience relevant to the Company&#146;s current or future business,
 will add specific value as a Board member; and </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Any
 factors related to the ability and willingness of a new nominee to serve, or an existing nominee to
 continue his or her service to, the Company. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Nominating Committee believes that a majority of the directors should be independent and, as a result,
 it also considers whether a director nominee is independent under the Company&#146;s Board of Director Independence
 Standards. The Committee also requires that all members of the Audit Committee be &#147;financially literate&#148;
 pursuant to applicable NASDAQ listing standards and that at least one member of the Audit Committee
 be an &#147;audit committee financial expert&#148; as defined by SEC rules and regulations; therefore, the Nominating
 Committee considers whether a director nominee meets these criteria when evaluating his or her qualifications.
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
 is the policy of the Nominating Committee to consider all director candidates recommended by shareholders,
 provided that such recommendations are made in accordance with the procedures outlined below in &#147;Shareholder
 Proposals for 2005 Annual Meeting.&#148; The Nominating Committee evaluates such candidates in accordance
 with the same criteria it uses to evaluate all other director candidates. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A015>Independent Directors</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Board of Directors has determined that, under the Company&#146;s Board of Director Independence Standards,
 Mr. Francis, Mr. Harrell, Mr. Kennedy, Mr. King, Mr. Morton and Mr. Parker are independent directors.
 The Board of Director Independence Standards can be found on the Investor section of the Company&#146;s website
 at www.invtitle.com under the heading &#147;Corporate Governance.&#148; </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A016>Compensation Committee Interlocks and Insider Participation</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Compensation Committee is comprised of James R. Morton, Loren B. Harrell, Jr. and A. Scott Parker III.
 None of these directors are officers, former officers, or employees of the Company or any of its subsidiaries.
 </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A017>Audit Committee Financial Experts</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Board of Directors has determined that all of the current Audit Committee members&#151;Mr. Francis, Mr. Harrell,
 Mr. Kennedy and Mr. King&#151;are audit committee financial experts. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A018>Board of Directors and Committees</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 the year ended December 31, 2003, the Board of Directors held five meetings. All incumbent directors
 and nominees, with the exception of William J. Kennedy III, attended 75% or more of the aggregate number
 of meetings of the Board of Directors and committees of the Board on which they served. The Company
 expects each of its directors to attend the Annual Meeting of Shareholders unless an emergency prevents
 them from attending. All of the Board members were present at the 2003 Annual Meeting with the exception
 of Loren B. Harrell, Jr. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company&#146;s Board of Directors has a Compensation Committee, a Nominating Committee, an Investment Committee
 and an Audit Committee. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
 Audit Committee</B>: In 2003, the Audit Committee was composed of David L. Francis, Loren B. Harrell,
 Jr., William J. Kennedy III and H. Joe King, Jr. The Audit Committee met ten times in 2003. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Audit Committee is directly responsible for hiring, dismissing, compensating and overseeing the Company&#146;s
 independent auditor and reviewing the scope of the annual audit proposed by the independent auditor.
 In addition, the Committee reviews internal audit procedures on various aspects of corporate operations,
 reviews and approves all related party transactions and periodically consults with the independent auditor
 on matters relating to internal financial controls and procedures. Finally, the </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>3&nbsp;</FONT></P>

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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
<!-- *************************************************************************** -->
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<TD><BR>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>Committee is responsible for establishing and administering
 complaint procedures related to accounting and auditing matters. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Audit Committee has a written charter that is available at no charge on the Investor section of the
 Company&#146;s website at www.invtitle.com under the heading &#147;Corporate Governance.&#148; The Audit Committee
 Charter and the Board of Directors Standard Committee Charter Provisions are also attached to this Proxy
 Statement. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company&#146;s stock is traded on the NASDAQ National Market under the symbol ITIC. NASDAQ has independence
 requirements for the members of a listed company&#146;s audit committee and the Board of Directors has determined
 that each member of the Company&#146;s Audit Committee is independent as such term is defined by Section
 301 of the Sarbanes-Oxley Act of 2002 and by NASDAQ&#146;s independent director and audit committee listing
 standards. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
 Compensation Committee: </B>In 2003, the Compensation Committee was composed of James R. Morton, Loren
 B. Harrell, Jr. and A. Scott Parker III. The Compensation Committee met twice in 2003. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
 Committee, which also serves as the Option Committee administering the Company&#146;s stock option plans,
 reviews salaries, bonuses and other compensation of all officers of the Company. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
 Nominating Committee</B>: In 2003, the Nominating Committee was composed of J. Allen Fine, David L.
 Francis and A. Scott Parker III. The Nominating Committee met once in 2003. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Nominating Committee has a written charter that is available at no charge on the Investor section of
 the Company&#146;s website at www.invtitle.com under the heading &#147;Corporate Governance.&#148; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Board of Directors has determined that in 2003 each member of the Company&#146;s Nominating Committee was
 independent as defined by Section 301 of the Sarbanes-Oxley Act of 2002 and by applicable NASDAQ independent
 director and nominating committee listing standards, with the exception of Mr. Fine. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A slate
 of nominees for director to present to the shareholders is recommended by the Nominating Committee and
 determined by at least a majority vote of those directors whose terms do not expire during the year
 in which the election of directors will be made. The Committee will consider nominees recommended by
 the shareholders. Any shareholder wishing to make a recommendation regarding a nominee for election
 at the 2005 Annual Meeting should submit his or her recommendation in accordance with the procedures
 outlined below in &#147;Shareholder Proposals for 2005 Annual Meeting.&#148; </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A019>Compensation of Directors </A></FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Fees
 and Benefit Plans</B>: Directors who are not employees of the Company receive an annual retainer for
 Board services of $3,000 and an attendance fee of $1,000 for each meeting of the Board of Directors
 attended, in addition to actual travel expenses related to the meetings. Directors do not receive fees
 for committee meetings attended unless the committee meeting is held on a day other than the regularly
 scheduled board meeting date. The fee for such a committee meeting is $250. Directors who are employees
 of the Company are paid no fees or other remuneration for service on the Board or on any Board committee.
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
 non-employee director of the Company was granted a Nonqualified Stock Option, exercisable for 500 shares
 at $25.28 per share, on May 15, 2003. These options were immediately exercisable and will expire on
 May 15, 2013. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Related
 Party Transactions</B>: As of November 17, 2003, Investors Title Insurance Company, a wholly owned subsidiary
 of the Company, entered into employment agreements with each of J. Allen Fine, James A. Fine, Jr. and
 W. Morris Fine. Please refer to the section entitled &#147;Executive Employment Agreements&#148; for a discussion
 of the terms and conditions of these employment agreements. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A020>Stock Ownership of Executive Officers and Certain Beneficial Owners</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following table indicates the persons and groups known to the Company to be the beneficial owners of
 more than five percent (5%) of the Company&#146;s Common Stock as of March 19, 2004. </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>4&nbsp;</FONT></P>

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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 21; page: 21" --><BR>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TD align=left colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Name and Address of<BR><U>Beneficial Owner</U></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Amount and Nature<BR><U>of Beneficial Ownership</U></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Percent<BR><U>of Class</U></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="55%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Markel Corporation</FONT></TD>
<TD align=left width="3%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="15%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>236,250</FONT></TD>
<TD align=left width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD align=right width="6%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>9.43</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><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;</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>4521 Highwoods Parkway, Glen Allen, Virginia 23060</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;</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 bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>194,358</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>7.67</FONT></TD>
<TD align=left bgColor=#cceeff><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;</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>121 N. Columbia Street, Chapel Hill, North Carolina 27514</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></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 bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>W. Morris Fine</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>185,550</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(3)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>7.28</FONT></TD>
<TD align=left bgColor=#cceeff><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;</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>121 N. Columbia Street, Chapel Hill, North Carolina 27514</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;</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 bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>James A. Fine, Jr.</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>184,623</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(4)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>7.25</FONT></TD>
<TD align=left bgColor=#cceeff><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;</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>121 N. Columbia Street, Chapel Hill, North Carolina 27514</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>

<BR>
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<TD>
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<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;The information included in the above table
 is based solely on Schedule 13G filed with the SEC on February 10, 2004. This amount includes 22,950
 shares over which Markel Corporation has shared dispositive power. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp;This includes 26,800 shares of Common Stock
 that Mr. Fine has the right to purchase under stock options that are presently exercisable or are exercisable
 within 60 days of March 19, 2003. Additionally, this includes 151,099 shares held by a limited liability
 company of which Mr. Fine is the manager and possesses sole voting and investment power with respect
 to such shares. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(3)&nbsp;This total includes 42,000 shares of Common
 Stock that Mr. Fine has the right to purchase under stock options that are presently exercisable or
 are exercisable within 60 days of March 19, 2004. Additionally, this total includes shares beneficially
 owned as follows: 95,000 shares held by a limited partnership of which Mr. Fine is a general partner
 and shares joint voting power over such shares with James A. Fine, Jr., such shares also being reflected
 in James A. Fine, Jr.'s beneficially owned shares; and 4,052 shares held by family members. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(4)&nbsp;This total includes 42,000 shares of Common
 Stock that Mr. Fine has the right to purchase under stock options that are presently exercisable or
 are exercisable within 60 days of March 19, 2004. Additionally, this total includes shares beneficially
 owned as follows: 95,000 shares held by a limited partnership of which Mr. Fine is a general partner
 and shares joint voting power over such shares with W. Morris Fine, such shares also being reflected
 in W. Morris Fine&#146;s beneficially owned shares; and 1,961 shares held by family members. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large 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
 table below sets forth the shares of the Company&#146;s Common Stock beneficially owned by each director,
 nominee for director, the executive officers named in the Summary Compensation Table, and by all directors
 and executive officers as a group. </FONT></P>

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</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Name of<BR><U>Beneficial Owner</U></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Amount and Nature<BR><U>of Beneficial Ownership</U></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Percent<BR><U>of Class</U></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="40%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="17%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>194,358</FONT></TD>
<TD align=left width="13%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD align=right width="8%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>7.67</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><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;</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>W. Morris Fine</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>185,550</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7.28</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;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>James A. Fine, Jr.</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>184,623</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(3)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>7.25</FONT></TD>
<TD align=left bgColor=#cceeff><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;</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>A. Scott Parker III</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>79,871</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>(4)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3.18</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;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>David L. Francis</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>48,666</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(5)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>1.94</FONT></TD>
<TD align=left bgColor=#cceeff><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;</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>James R. Morton</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>22,065</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>(6)</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></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 bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>H. Joe King, Jr.</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>21,276</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(7)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left bgColor=#cceeff><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;</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>William J. Kennedy III</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>5,500</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>(6)</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></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 bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Loren B. Harrell, Jr.</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>3,500</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(6)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left bgColor=#cceeff><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;</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>All Executive Officers and</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;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Directors as a Group (9 persons)</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>745,409</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>(8)</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>28.26</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD></TR>
</TABLE>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>*<I>Represents less than 1% </I></FONT></P>

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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>5&nbsp;</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;This includes 26,800 shares of Common Stock
 that Mr. Fine has the right to purchase under stock options that are presently exercisable or are exercisable
 within 60 days of March 19, 2004. Additionally, this includes 151,099 shares held by a limited liability
 company of which Mr. Fine is the manager and possesses sole voting and investment power with respect
 to such shares. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp;This total includes 42,000 shares of Common
 Stock that Mr. Fine has the right to purchase under stock options that are presently exercisable or
 are exercisable within 60 days of March 19, 2004. Additionally, this total includes shares beneficially
 owned as follows: 95,000 shares held by a limited partnership of which Mr. Fine is a general partner
 and shares joint voting power over such shares with James A. Fine, Jr., such shares also being reflected
 in James A. Fine, Jr.'s beneficially owned shares; and 4,052 shares held by family members. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(3)&nbsp;This total includes 42,000 shares of Common
 Stock that Mr. Fine has the right to purchase under stock options that are presently exercisable or
 are exercisable within 60 days of March 19, 2004. Additionally, this total includes shares beneficially
 owned as follows: 95,000 shares held by a limited partnership of which Mr. Fine is a general partner
 and shares joint voting power over such shares with W. Morris Fine, such shares also being reflected
 in W. Morris Fine&#146;s beneficially owned shares; and 1,961 shares held by family members. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(4)&nbsp;This total includes 3,000 shares of Common
 Stock that Mr. Parker has the right to purchase under stock options that are presently exercisable or
 are exercisable within 60 days of March 19, 2004. Additionally, this total includes shares beneficially
 owned as follows: 3,266 shares held by his wife. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(5)&nbsp;This total includes 3,500 shares of Common
 Stock that Mr. Francis has the right to purchase under stock options that are presently exercisable
 or are exercisable within 60 days of March 19, 2004. This total also includes shares beneficially owned
 as follows: 1,000 shares held by his wife. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(6)&nbsp;This total includes 3,500 shares of Common
 Stock available for purchase under stock options that are presently exercisable or are exercisable within
 60 days of March 19, 2004. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(7)&nbsp;This total includes 3,500 shares of Common
 Stock that Mr. King has the right to purchase under stock options that are presently exercisable or
 are exercisable within 60 days of March 19, 2004. This total also includes shares beneficially owned
 as follows: 700 shares held by his wife. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(8)&nbsp;This total includes 131,300 shares of Common
 Stock that all officers and directors, as a group, have the right to purchase under stock options that
 are presently exercisable or are exercisable within 60 days of March 19, 2004. </FONT></P>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A021>PROPOSALS REQUIRING YOUR VOTE: ELECTION OF DIRECTORS</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company&#146;s Board of Directors is composed of 9 members divided into three classes with staggered terms
 of three years for each class. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine, David L. Francis and A. Scott Parker
 III are nominated for re-election to serve for a three-year period or until their respective successors
 have been elected and qualified. The nominees will be elected if they receive a plurality of the votes
 cast for their election. Broker nonvotes and abstentions will not affect the election results if a quorum
 is present. If any of the nominees should withdraw or otherwise become unavailable for reasons not presently
 known, shares represented by proxies may be voted for other persons in their place in accordance with
 the best judgment of the persons named in the Proxy. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
 Board unanimously recommends that you vote &#147;FOR&#148; the election of the directors nominated to serve until
 the Annual Meeting of Shareholders in 2007.</B> </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A022>Information Regarding Nominees for Election as Directors</A> </FONT></H1>

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<BR>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="6%"><FONT face="Times New Roman, Times, Serif" size=2>Name</FONT>
<HR noShade SIZE=1>
<FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="19%">&nbsp;</TD>
<TD align=center width="5%"><FONT face="Times New Roman, Times, Serif" size=2>Age</FONT>
<HR noShade SIZE=1>
<FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=center width="11%">&nbsp;</TD>
<TD noWrap align=center width="9%"><FONT face="Times New Roman, Times, Serif" size=2>Served as<BR>Director<BR>Since</FONT>
<HR noShade SIZE=1>
<FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="11%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=center width="6%"><FONT face="Times New Roman, Times, Serif" size=2>Term<BR>&nbsp;&nbsp; to<BR>Expire</FONT>
<HR noShade SIZE=1>
<FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="24%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left bgColor=#cceeff colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>69</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="11%" bgColor=#cceeff>&nbsp;</TD>
<TD align=right width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>1973</FONT></TD>
<TD align=left width="11%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="6%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2007</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="24%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>David L. Francis</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="5%"><FONT face="Times New Roman, Times, Serif" size=2>71</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="11%">&nbsp;</TD>
<TD align=right width="9%"><FONT face="Times New Roman, Times, Serif" size=2>1982</FONT></TD>
<TD align=left width="11%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="6%"><FONT face="Times New Roman, Times, Serif" size=2>2007</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="24%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left bgColor=#cceeff colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>A. Scott Parker III</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>60</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="11%" bgColor=#cceeff>&nbsp;</TD>
<TD align=right width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>1998</FONT></TD>
<TD align=left width="11%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="6%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2007</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="24%">&nbsp;</TD></TR>
</TABLE>

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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>6</FONT></P>

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<HR color=gray noShade SIZE=5>
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<P><FONT face="Times New Roman, Times, Serif" size=2><B>J. Allen Fine</B> was the principal organizer of
 Investors Title Insurance Company and has been Chairman of the Board of the Company, Investors Title
 Insurance Company, and Northeast Investors Title Insurance Company since their incorporation. Mr. Fine
 served as President of Investors Title Insurance Company until February 1997, when he was named Chief
 Executive Officer. Additionally, Mr. Fine serves as Chief Executive Officer of the Company and Northeast
 Investors Title Insurance Company, and Chairman of the Board of Investors Title Exchange Corporation,
 Investors Capital Management Company and Investors Trust Company. Investors Title Insurance Company,
 Northeast Investors Title Insurance Company, Investors Title Exchange Corporation, Investors Title Accommodation
 Corporation, Investors Capital Management Company and Investors Trust Company are all wholly owned subsidiaries
 of the Company. Mr. Fine is the father of James A. Fine, Jr., President, Chief Financial Officer and
 Treasurer of the Company, and W. Morris Fine, Executive Vice President and Secretary of the Company.
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>David L. Francis</B> retired in 1997 as the President
 of Marsh Mortgage Company, a mortgage banking firm, and Marsh Associates, Inc., a property management
 company, where he had been employed since 1963. He serves on the Board of Directors of First Landmark,
 a Charlotte real estate and property management firm, and is General Partner of the Francis Family Limited
 Partnership. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>A. Scott Parker III</B> founded Today&#146;s Home, Inc.
 in 1975 and has been President of that company since its incorporation. Today&#146;s Home, Inc. manufactures
 lamps and wall decor for the lodging, hospitality and healthcare industries. He is also managing member
 of Parker-Jones-Kemp LLC and Greenham Investments, LLC, developers of furniture showroom properties
 to the trade. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A023>Information Regarding Directors Continuing in Office</A> </FONT></H1>

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<BR>
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=bottom>
<TD width="3%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD width="34%"><FONT face="Times New Roman, Times, Serif" size=2>Name </FONT>
<HR align=left width="13%" noShade SIZE=1>
</TD>
<TD noWrap align=center width="8%"><FONT face="Times New Roman, Times, Serif" size=2><BR><BR>Age</FONT>
<HR noShade SIZE=1>
</TD>
<TD align=center width="8%">&nbsp;</TD>
<TD align=center width="4%"><FONT face="Times New Roman, Times, Serif" size=2>Served as <BR>Director<BR>Since </FONT>
<HR noShade SIZE=1>
</TD>
<TD width="10%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=center width="4%"><FONT face="Times New Roman, Times, Serif" size=2>Term<BR>to<BR>Expire </FONT>
<HR noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="34%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>W. Morris Fine</FONT></TD>
<TD align=center width="8%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>37&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="8%" bgColor=#cceeff>&nbsp;</TD>
<TD align=right width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>1999&nbsp;</FONT></TD>
<TD align=right width="10%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2005&nbsp;</FONT></TD>
<TD align=left width="29%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="34%"><FONT face="Times New Roman, Times, Serif" size=2>Loren B. Harrell, Jr.</FONT></TD>
<TD align=center width="8%"><FONT face="Times New Roman, Times, Serif" size=2>55&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="8%">&nbsp;</TD>
<TD align=right width="4%"><FONT face="Times New Roman, Times, Serif" size=2>1996&nbsp;</FONT></TD>
<TD align=left width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>2005&nbsp;</FONT></TD>
<TD align=left width="29%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="34%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>William J. Kennedy III</FONT></TD>
<TD align=center width="8%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>81&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="8%" bgColor=#cceeff>&nbsp;</TD>
<TD align=right width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>1987&nbsp;</FONT></TD>
<TD align=left width="10%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2005&nbsp;</FONT></TD>
<TD align=left width="29%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="34%"><FONT face="Times New Roman, Times, Serif" size=2>James A. Fine, Jr.</FONT></TD>
<TD align=center width="8%"><FONT face="Times New Roman, Times, Serif" size=2>42&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="8%">&nbsp;</TD>
<TD align=right width="4%"><FONT face="Times New Roman, Times, Serif" size=2>1997&nbsp;</FONT></TD>
<TD align=left width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>2006&nbsp;</FONT></TD>
<TD align=left width="29%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="34%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>H. Joe King, Jr.</FONT></TD>
<TD align=center width="8%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>71&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="8%" bgColor=#cceeff>&nbsp;</TD>
<TD align=right width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>1983&nbsp;</FONT></TD>
<TD align=left width="10%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2006&nbsp;</FONT></TD>
<TD align=left width="29%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="34%"><FONT face="Times New Roman, Times, Serif" size=2>James R. Morton</FONT></TD>
<TD align=center width="8%"><FONT face="Times New Roman, Times, Serif" size=2>66&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="8%">&nbsp;</TD>
<TD align=right width="4%"><FONT face="Times New Roman, Times, Serif" size=2>1985&nbsp;</FONT></TD>
<TD align=left width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>2006&nbsp;</FONT></TD>
<TD align=left width="29%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>7&nbsp;</FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
<!-- MARKER PAGE="sheet: 12; page: 12" -->
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<TR vAlign=top>
<TD><BR>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>W. Morris Fine</B> is Executive Vice President and
 Secretary of the Company, President and Chief Operating Officer of Investors Title Insurance Company
 and Northeast Investors Title Insurance Company, President and Chairman of the Board of Investors Title
 Management Services, Inc., Vice President of Investors Title Exchange Corporation and Investors Title
 Accommodation Corporation, and Chief Financial Officer of Investors Trust Company. Investors Title Insurance
 Company, Northeast Investors Title Insurance Company, Investors Title Management Services, Inc., Investors
 Title Exchange Corporation, Investors Title Accommodation Corporation, Investors Capital Management
 Company and Investors Trust Company are all wholly owned subsidiaries of the Company. Mr. Fine is the
 son of J. Allen Fine, Chief Executive Officer and Chairman of the Board of the Company, and brother
 of James A. Fine, Jr., Chief Financial Officer and Treasurer of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>Loren B. Harrell, Jr.</B> organized SoftPro Corporation
 in 1984 and served as President and CEO from 1984 until his retirement in 2003. SoftPro Corporation
 is now a wholly owned subsidiary of Fidelity National Financial, Inc. SoftPro specializes in the research
 and development of software utilized by law firms, title companies, title insurance agents and lending
 institutions in the title insurance industry. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>William J. Kennedy III</B> retired as President
 and Chief Executive Officer of North Carolina Mutual Life Insurance Company in 1990, where he had been
 employed since 1950. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>James A. Fine, Jr.</B> is President, Chief Financial
 Officer and Treasurer of Investors Title Company, Executive Vice President, Chief Financial Officer
 and Treasurer of Investors Title Insurance Company, Executive Vice President and Chief Financial Officer
 of Northeast Investors Title Insurance Company, Executive Vice President of Investors Title Management
 Services, Inc., President of Investors Title Exchange Corporation and Investors Title Accommodation
 Corporation, and Chief Executive Officer of Investors Trust Company. Additionally, Mr. Fine serves as
 Chairman of the Board of Investors Title Accommodation Corporation, Investors Capital Management Company
 and Investors Trust Company. Investors Title Insurance Company, Northeast Investors Title Insurance
 Company, Investors Title Management Services, Inc., Investors Title Exchange Corporation, Investors
 Title Accommodation Corporation, Investors Capital Management Company and Investors Trust Company are
 all wholly owned subsidiaries of the Company. Mr. Fine is the son of J. Allen Fine, Chief Executive
 Officer and Chairman of the Board of the Company, and brother of W. Morris Fine, Executive Vice President
 and Secretary of the Company. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>H. Joe King, Jr.</B> retired as President and Chairman
 of the Board of Home Federal Savings &amp; Loan Association in Charlotte, North Carolina and its parent
 company, HFNC Financial Corporation, in 1998, where he had been employed since 1962. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>James R. Morton</B> was President of J. R. Morton
 Associates from 1968 until he retired in 1988. He is currently President of TransCarolina Corporation.
 </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A024>INDEPENDENT AUDITOR</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deloitte
 &amp; Touche LLP served as the independent auditor for the Company for the fiscal year ended December
 31, 2003. The Audit Committee has not yet selected the Company&#146;s independent auditor for the fiscal
 year ended December 31, 2004. Representatives of Deloitte &amp; Touche LLP are expected to attend the
 2004 Annual Meeting of Shareholders and be available to respond to appropriate questions. They will
 have the opportunity to make a statement if they desire to do so. </FONT></P>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>8&nbsp;</FONT></P>

<HR color=gray noShade SIZE=5>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A025>Audit and Non-Audit Fees</A> </FONT></H1>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
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</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD><BR>
<!-- MARKER FORMAT-SHEET="Para Large 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
 following table shows fees for professional services rendered by Deloitte &amp; Touche LLP for the audit
 of the Company&#146;s annual financial statements for the years ended December 31, 2003 and December 31,
 2002, and fees billed for other services rendered by Deloitte &amp; Touche LLP during those periods.
 Certain amounts for 2002 have been reclassified to conform to the 2003 presentation. </FONT></P>

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</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=1></FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=1></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=1><B>2003</B></FONT>
<HR align=center width="35%" noShade SIZE=1>
</TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=1><B>2002</B></FONT>
<HR align=center width="40%" noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left width="12%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="6%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="36%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Audit Fees(1)</FONT></TD>
<TD align=left width="6%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="15%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>$125,840</FONT></TD>
<TD align=left width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="13%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>$107,400</FONT></TD>
<TD align=left width="5%"><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;</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>Audit-Related Fees</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>0</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>0</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left colSpan=4><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right>
<HR width="55%" noShade SIZE=1>
</TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right>
<HR width="60%" noShade SIZE=1>
</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;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Tax Fees(2)</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>35,400</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>38,190</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;</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>All Other Fees(3)</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>0</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>0</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left colSpan=4><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right>
<HR width="55%" noShade SIZE=1>
</TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right>
<HR width="60%" noShade SIZE=1>
</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;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Total Fees(4)</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>$161,250</FONT></TD>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>$145,590</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>

<BR>
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<TD>
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<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;Audit fees consisted of the audit of the Company&#146;s
 financial statements, reviews of the Company&#146;s quarterly financial statements, statutory audits, consents,
 the review of various employment agreements and stock plans for key executives, and other services related
 to compliance with the U.S. Securities and Exchange Commission rules and regulations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp;Tax fees consisted primarily of tax compliance
 services and tax advice and planning. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>(3)&nbsp;The Company generally does not engage Deloitte
 &amp; Touche LLP for &#147;other&#148; services. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>(4)&nbsp;All of the above services either were approved
 by the Audit Committee prior to entering into the engagement or the engagement to render such services
 was pre-approved pursuant to the Company&#146;s Audit and Non-Audit Services Pre-Approval Policy. </FONT>
</P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 considering the nature of the services provided by the independent auditor, the Audit Committee determined
 that such services are compatible with the provision of independent audit services. The Audit Committee
 discussed these services with the independent auditor and Company management to determine that they
 are permitted under the rules and regulations concerning auditor independence promulgated by the U.S.
 Securities and Exchange Commission to implement the Sarbanes-Oxley Act of 2002, as well as the American
 Institute of Certified Public Accountants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A026>Audit and Non-Audit Services Pre-Approval Policy</A> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent
 with SEC policies governing auditor independence, the Company&#146;s Audit Committee is directly responsible
 for appointing, compensating, and overseeing the work of the Company&#146;s independent auditor. To carry
 out its duties, the Audit Committee adopted an Audit and Non-Audit Services Pre-Approval Policy for
 pre-approving all audit and permissible non-audit services provided by the Company&#146;s independent auditor.
 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
 year prior to engaging the independent auditor for the following year&#146;s audit, management submits to
 the Audit Committee for approval a list of proposed services and associated fees to be performed by
 the independent auditor for such fiscal year. Prior to engagement, the Audit Committee pre-approves
 independent auditor services and associated fees within the categories of Audit Services, Audit-Related
 Services, Tax Services, and Other Services. The Audit Committee is responsible for ensuring that services
 provided by the independent auditor are permissible under applicable legal requirements. Management
 periodically informs the Audit Committee of the services actually provided by the independent auditor
 pursuant to this pre-approval process and the fees associated with such services. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Throughout
 the year, circumstances may arise that require the engagement of the independent auditor for additional
 services that were not contemplated by the existing pre-approval categories. In that case, the Audit
 and Non-Audit Services Pre-Approval Policy requires specific approval of such services before engaging
 the independent auditor. To ensure the prompt handling of such matters, the Audit Committee has granted
 pre-approval authority to both its Chair and its Vice-Chair. For informational </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>9&nbsp;</FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End Rule" FSL="Project" -->
<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
<!-- *************************************************************************** -->
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<P><FONT face="Times New Roman, Times, Serif" size=2>purposes only, the Chair or Vice-Chair reports any
 pre-approval decisions made at the next Audit Committee meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A027><B>Audit Committee Report</B></A> </FONT>
</P>

<!-- MARKER FORMAT-SHEET="Para Large 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
 Audit Committee of the Board of Directors is comprised of the four directors named below. Each member
 of the Audit Committee is an independent director as defined by Section 301 of the Sarbanes-Oxley Act
 of 2002 and by NASDAQ&#146;s independent director and audit committee listing standards. In accordance with
 its written charter, the Audit Committee is responsible for assisting the Board of Directors in overseeing
 the quality and integrity of the accounting and financial reporting practices of the Company. In addition,
 the Audit Committee is directly responsible for appointing, compensating, and overseeing the work of
 the Company&#146;s independent auditor. To carry out its duties, the Audit Committee has established procedures
 for pre-approving all audit and permissible non-audit services provided by the independent auditor.
 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent
 with Independence Standards Board No. 1, &#147;Independence Discussions with Audit Committees,&#148; the Audit
 Committee obtained from Deloitte &amp; Touche LLP a formal written statement describing all relationships
 between the auditors and the Company that might bear on the auditors&#146; independence. The Audit Committee
 has also discussed with the independent auditor any relationships that may have an impact on their objectivity
 and independence and considered whether performance of services other than audit services is compatible
 with maintaining the independence of the auditors. The Audit Committee has concluded that Deloitte &amp;
 Touche LLP is independent from the Company and its management. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large 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
 Audit Committee discussed and reviewed with management and the independent auditors the audited financial
 statements of the Company as of and for the year ended December 31, 2003. Management has the responsibility
 for the preparation of the Company&#146;s financial statements and the independent auditors have the responsibility
 for the examination of those statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large 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
 Audit Committee also discussed with the independent auditors the matters required to be discussed by
 Statement on Auditing Standards No. 61, as amended, &#147;Communication with Audit Committees&#148; and, with
 and without management present, discussed and reviewed the results of the independent auditors&#146; examination
 of the financial statements. Finally, the Audit Committee discussed the quality and adequacy of the
 Company&#146;s internal controls with the independent auditors and management and reviewed with the independent
 auditors their audit plans, audit scope and identification of audit risks. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large 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
 reliance on the reviews and discussion referenced above, the Audit Committee recommended to the Board
 of Directors that the Company&#146;s audited financial statements be included in its Annual Report on Form
 10-K for the year ended December 31, 2003, for filing with the Securities and Exchange Commission. </FONT>
</P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>Submitted by the Audit Committee of the Board of
 Directors:</B> <BR>William J. Kennedy III, Chairman<BR>Loren B. Harrell, Jr.<BR>David L. Francis<BR>H.
 Joe King, Jr.<BR></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>March 26, 2004 </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<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 color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
<!-- MARKER PAGE="sheet: 13; page: 13" -->
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<TD><BR>
<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A028>EXECUTIVE COMPENSATION</A> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A029>Summary Compensation Table</A> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large 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 information concerning the annual compensation for services in all capacities to the Company
 for the fiscal years ended December 31, 2003, 2002, and 2001, of those persons who were, at December
 31, 2003 (i) the Chief Executive Officer and (ii) the senior executive officers, other than the CEO,
 who earned more than $100,000 in salary and bonus during 2003. </FONT></P>

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</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=bottom>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=3>
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2><U>Long Term Compensation<BR>Awards</U> </FONT></DIV></TD>
<TD width="3%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD></TR>
<TR vAlign=bottom>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=3>
<DIV align=center><FONT face="Times New Roman, Times, Serif" size=2><U>Annual Compensation</U> </FONT></DIV></TD>
<TD colSpan=3><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD></TR>
<TR vAlign=bottom>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name and<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Position</FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Year</FONT></TD>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Salary<BR>($)</FONT></TD>
<TD width="12%">
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2>Bonus<BR>($)</FONT></DIV></TD>
<TD width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>Securities<BR>Underlying<BR>Options/<BR>SARs (#)</FONT></TD>
<TD width="3%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>All Other<BR>Compensation<BR>($)</FONT></TD>
<TD width="1%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left colSpan=11>
<HR align=center width="100%" noShade SIZE=1>
</TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="23%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine</FONT></TD>
<TD align=left width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2003</FONT></TD>
<TD align=left width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>250,834</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>200,000</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="14%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="3%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>17,675</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Chief Executive</FONT></TD>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>2002</FONT></TD>
<TD align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2>244,138</FONT></TD>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>125,000</FONT></TD>
<TD align=left width="4%"><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>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,275</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Officer</FONT></TD>
<TD align=left width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2001</FONT></TD>
<TD align=left width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>238,662</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>100,000</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>50,000</FONT></TD>
<TD align=left width="3%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>14,601</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=left width="9%">&nbsp;</TD>
<TD align=left width="5%">&nbsp;</TD>
<TD align=left width="7%">&nbsp;</TD>
<TD align=right width="7%">&nbsp;</TD>
<TD align=left width="5%">&nbsp;</TD>
<TD align=right width="12%">&nbsp;</TD>
<TD align=left width="4%">&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>James A. Fine, Jr</FONT></TD>
<TD align=left width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2003</FONT></TD>
<TD align=left width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>200,000</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>200,000</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="3%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>23,079</FONT></TD>
<TD align=left width="1%"><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>President and Chief</FONT></TD>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>2002</FONT></TD>
<TD align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2>194,167</FONT></TD>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>50,000</FONT></TD>
<TD align=left width="4%"><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>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>32,783</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>Financial Officer</FONT></TD>
<TD align=left width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2001</FONT></TD>
<TD align=left width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>188,375</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>35,000</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>50,000</FONT></TD>
<TD align=left width="3%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>19,146</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=left width="9%">&nbsp;</TD>
<TD align=left width="5%">&nbsp;</TD>
<TD align=left width="7%">&nbsp;</TD>
<TD align=right width="7%">&nbsp;</TD>
<TD align=left width="5%">&nbsp;</TD>
<TD align=right width="12%">&nbsp;</TD>
<TD align=left width="4%">&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>W. Morris Fine</FONT></TD>
<TD align=left width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2003</FONT></TD>
<TD align=left width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>200,000</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>200,000</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="3%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>23,079</FONT></TD>
<TD align=left width="1%"><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>Executive Vice</FONT></TD>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>2002</FONT></TD>
<TD align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2>194,167</FONT></TD>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>50,000</FONT></TD>
<TD align=left width="4%"><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>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>23,372</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>President</FONT></TD>
<TD align=left width="9%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>2001</FONT></TD>
<TD align=left width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>188,375</FONT></TD>
<TD align=left width="5%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>35,000</FONT></TD>
<TD align=left width="4%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>50,000</FONT></TD>
<TD align=left width="3%" bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right bgColor=#cceeff><FONT face="Times New Roman, Times, Serif" size=2>19,146</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left colSpan=11>
<HR align=center width="100%" noShade SIZE=1>
</TD>
<TD align=left width="1%">&nbsp;</TD></TR>
</TABLE>

<BR>
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<TD>
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<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;Total represents $16,000 Company contribution
 to Simplified Employee Pension Plan, along with $1,675&nbsp;&nbsp; Company-paid life insurance premiums.
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp;Total represents $16,000 Company contribution
 to Simplified Employee Pension Plan, along with $1,344 Company-paid life insurance premiums and $5,735
 Company-paid health insurance premiums. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>(3)&nbsp;Total represents $16,000 Company contribution
 to Simplified Employee Pension Plan, along with $1,344 Company-paid life insurance premiums and $5,735
 Company-paid health insurance premiums. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A030>Stock Option Grants in 2003</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 were no options granted to the named executive officers during the fiscal year ended December 31, 2003.
 </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A031>Aggregated Option Exercises in 2003 and Year-End Option Values</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following table shows stock options exercised by the executive officers named in the Summary Compensation
 Table during 2003, including the aggregate value of gains on the date of exercise (the &#147;Value Realized&#148;).
 In addition, this table shows the number of shares covered by both exercisable and unexercisable stock
 options outstanding as of December 31, 2003. Also reported are the values for &#147;in-the-money&#148; options
 that represent the positive spread between the exercise price of any such existing stock options and
 the year-end price of the Common Stock. </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>11</FONT></P>

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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=bottom>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Name </FONT>
<HR align=center width="25%" noShade SIZE=1>
</TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Shares<BR>Acquired on<BR>Exercise (#) </FONT>
<HR align=center width="80%" noShade SIZE=1>
</TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Value<BR>Realized<BR>($)</FONT>
<HR align=center width="60%" noShade SIZE=1>
</TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Number of Securities<BR>Underlying Unexercised<BR>Options at Year-End (#) </FONT>
<HR align=center width="90%" noShade SIZE=1>
</TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Value of Unexercised<BR>In-the-Money Options<BR>at Year-End ($)(1) </FONT>
<HR align=center width="90%" noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD align=left width="22%"><FONT face="Times New Roman, Times, Serif" size=2>J. Allen Fine</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="9%"><FONT face="Times New Roman, Times, Serif" size=2>3,000</FONT></TD>
<TD align=left width="5%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>$48,060</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="18%"><FONT face="Times New Roman, Times, Serif" size=2>26,800 / 26,800</FONT></TD>
<TD align=left width="6%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="19%"><FONT face="Times New Roman, Times, Serif" size=2>$403,828 / 403,828</FONT></TD>
<TD align=left width="5%"><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>James A. Fine, Jr</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>&#151;</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>&#151;</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>42,000 / 42,000</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>624,460 / 624,460</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>W. Morris Fine</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>&#151;</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>&#151;</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>42,000 / 42,000</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>624,460 / 624,460</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>

<BR>
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<P><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;The closing price of the Common Stock on December
 31, 2003, the last day of 2003 on which the Company&#146;s Common Stock traded, was $31.01. </FONT></P>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A032>COMPENSATION COMMITTEE REPORT</A> </FONT></H1>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A033>Overview of Compensation Program</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company strives to provide a competitive compensation package that allows it to both attract and retain
 qualified and experienced corporate officers and key employees while motivating its employees to perform
 to their fullest extent. The Company considers factors such as job performance, experience and contribution
 to the growth of the Company in determining an employee&#146;s compensation. Investors Title Company&#146;s compensation
 package remains competitive with compensation packages offered by other employers of comparable size
 engaged in similar lines of business. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A034>Evaluation of Executive Performance</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 evaluating the performance and establishing the incentive compensation of the Chief Executive Officer
 and other members of senior management, the Compensation Committee has reviewed and taken into account
 the successful efforts of those employees in maximizing the Company&#146;s sales by establishing operations
 in new market areas and expanding operations in existing market areas. The Compensation Committee also
 considered, when reviewing senior management&#146;s performance and determining appropriate compensation,
 their consistent commitment to the Company&#146;s long-term success through the introduction of innovative
 strategies and procedures and intra-Company restructuring. An assessment of the above factors led the
 Compensation Committee to the conclusion that members of the Company&#146;s senior executives remain dedicated
 to achieving long-term growth and that the compensation package it approved has contributed to such
 dedication and accomplishments. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A035>Total Compensation</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation
 for each of the senior executives, including the named executive officers, consists of a base salary,
 a cash and/or stock bonus, incentive stock options and a contribution under a Simplified Employee Pension
 Plan. In determining the amount of each such element of the compensation package for members of senior
 management, the Compensation Committee takes into consideration the value of each executive&#146;s total
 compensation. </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A036><B>Salaries</B></A> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
 reviews the proposed compensation packages with the Compensation Committee each year, and the Committee
 recommends any modifications it deems appropriate based upon industry standards, national surveys, and
 individual performance. The Compensation Committee uses the same criteria to fix the Chief Executive
 Officer&#146;s base salary, in addition to assessing his past performance and reviewing their expectations
 as to his future leadership of the Company. </FONT></P>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A037>Annual Incentive Awards</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 executive officers named in the Summary Compensation Table and other senior executives of the Company
 receive stock and cash bonuses based upon their job performance throughout the year. In addition to
 the factors discussed above that pertain to the introduction of innovations and new and expanded market
 areas, the Compensation Committee also analyzed the performance of the Company&#146;s competitors and other
 subjective criteria in setting the Chief Executive Officer&#146;s bonus award. </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>12 </FONT></P>

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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
<!-- *************************************************************************** -->
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD><BR>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A038>Stock Options</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Compensation Committee periodically considers issuing stock options to its employees in order to link
 the interests and concerns of the Company&#146;s executives with those of its shareholders. Stock option
 grants provide an incentive for executives to focus on managing the Company from the perspective of
 an owner with an equity stake in the Company. In the Committee&#146;s opinion, past stock option grants were
 successful in focusing senior management on building profitability and shareholder value. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Compensation Committee reviews the proposed option awards with the Chief Executive Officer before granting
 stock options to key employees, officers and directors of the Company. The Chief Executive Officer is
 eligible to participate in the same executive compensation plans, including stock option plans, which
 are available to the other senior executives. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>Submitted by the Compensation Committee of the Board
 of Directors:</B> <BR>James R. Morton <BR>Loren B. Harrell, Jr.<BR>A. Scott Parker III </FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>February 9, 2004 </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<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 color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD><BR>
<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A039>PERFORMANCE GRAPH</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The following graph compares the cumulative total return
 among the Company&#146;s Common Stock, a broad equity market index (the NASDAQ &#151; Total US) and a peer group
 index for the last five years. The Custom Peer Group (selected on the basis of SIC Codes for publicly-traded
 title insurance companies) consists of Fidelity National Financial, Inc., First American Corporation,
 LandAmerica Financial Group, Inc., and Stewart Information Services Corporation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>COMPARE 5-YEAR CUMULATIVE TOTAL RETURN AMONG<BR>INVESTORS TITLE COMPANY,<BR>CUSTOM PEER GROUP INDEX AND NASDAQ &#151; TOTAL US MARKET INDEX </FONT></H1>

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

<BR>
<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD>
<HR width="100%" noShade SIZE=1>
</TD>
<TD align=center colSpan=3><FONT face="Times New Roman, Times, Serif" size=2>Period Ending </FONT></TD>
<TD colSpan=2>
<HR width="100%" noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD><FONT face="Times New Roman, Times, Serif" size=2><B><I>Index</I></B> </FONT></TD>
<TD>
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2><B>12/31/98</B> </FONT></DIV></TD>
<TD>
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2><B>12/31/99</B> </FONT></DIV></TD>
<TD>
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2><B>12/31/00</B> </FONT></DIV></TD>
<TD>
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2><B>12/31/01</B> </FONT></DIV></TD>
<TD>
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2><B>12/31/02</B> </FONT></DIV></TD>
<TD>
<DIV align=right><FONT face="Times New Roman, Times, Serif" size=2><B>12/31/03</B> </FONT></DIV></TD></TR>
<TR vAlign=bottom>
<TD colSpan=7>
<HR width="100%" noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD align=left width="31%"><FONT face="Times New Roman, Times, Serif" size=2>Investors Title Company</FONT></TD>
<TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2>100.00&nbsp;</FONT></TD>
<TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2>82.66&nbsp;</FONT></TD>
<TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2>76.24&nbsp;</FONT></TD>
<TD align=right width="11%"><FONT face="Times New Roman, Times, Serif" size=2>75.34&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>112.16&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>152.93&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Custom Peer Group*</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100.00&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>40.79&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>103.80&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>72.02&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>96.13&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>144.11&nbsp;</FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NASDAQ - Total US</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100.00&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>185.95&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>113.19&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>89.65&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>61.67&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>92.90&nbsp;</FONT></TD></TR>
</TABLE>

<BR>
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<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=top>
<TD>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ASSUMES $100 INVESTED ON JAN. 1, 1998<BR>ASSUMES DIVIDEND
 REINVESTED FISCAL YEAR ENDING DEC. 31, 2003 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>*<I>The Custom Peer Group consists of Fidelity National
 Financial, Inc., First American Corporation, LandAmerica Financial Group, Inc., and Stewart Information
 Services Corporation. </I></FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>&#169; 2004 SNL Financial L.C. All rights reserved </FONT>
</P>
<BR><BR>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A040><B>EQUITY COMPENSATION PLAN INFORMATION</B></A>
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following table provides information about our compensation plans under which equity securities are
 authorized for issuance as of December 31, 2003. The Company does not have any equity compensation plans
 that have not been approved by its shareholders. </FONT></P>

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</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width=600>
<TR vAlign=bottom>
<TD colSpan=2><FONT face="Times New Roman, Times, Serif" size=2><B>Plan Category</B></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2><B>Number of<BR>Securities to be <BR>Issued Upon Exercise<BR>of Outstanding<BR>Options, Warrants <BR>and Rights</B></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2><B>Weighted Average<BR>Price of Outstanding<BR>Options, Warrants<BR>and Rights</B></FONT></TD>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2><B>Number of Securities<BR>Remaining Available <BR>for Future<BR>Issuance Under Equity<BR>Compensation Plans</B></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left colSpan=8>
<HR width="100%" noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left width="28%">&nbsp;</TD>
<TD align=left width="3%">&nbsp;</TD>
<TD align=right width="15%">&nbsp;</TD>
<TD align=left width="7%">&nbsp;</TD>
<TD align=right width="12%">&nbsp;</TD>
<TD align=left width="7%">&nbsp;</TD>
<TD align=right width="17%">&nbsp;</TD>
<TD align=left width="11%">&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD align=left width="28%"><FONT face="Times New Roman, Times, Serif" size=2>Equity compensation plans<BR>approved by shareholders </FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top align=right width="15%"><FONT face="Times New Roman, Times, Serif" size=2>264,891</FONT></TD>
<TD vAlign=top align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2>$16.09</FONT></TD>
<TD vAlign=top align=left width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top align=right width="17%"><FONT face="Times New Roman, Times, Serif" size=2>204,350</FONT></TD>
<TD align=left width="11%"><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=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Equity compensation plans not<BR>approved by shareholders </FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top align=right><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD vAlign=top align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left colSpan=8>
<HR width="100%" noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<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=right><FONT face="Times New Roman, Times, Serif" size=2>264,891</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>$16.09</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>204,350</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left colSpan=8>
<HR width="100%" noShade SIZE=1>
</TD></TR>
</TABLE>


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<TR vAlign=top>
<TD><BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>14</FONT></P>

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<HR color=gray noShade SIZE=5>
</TD></TR>
</TABLE>

<BR>
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<TD><BR>
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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A041>EXECUTIVE EMPLOYMENT AGREEMENTS</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of November 17, 2003, Investors Title Insurance Company (&#147;ITIC&#148;), a wholly owned subsidiary of the Company,
 entered into an employment agreement with J. Allen Fine. The initial term of the agreement is five years
 and, on the first day of each calendar month, the term is extended one additional month so that at all
 times the term shall be five years, unless terminated sooner pursuant to the agreement. The agreement
 provides for a salary of no less than $245,000 per annum to be fixed annually by the Board of Directors
 of the Company and, among other benefits, ITIC shall make a quarterly contribution on Mr. Fine&#146;s behalf
 to a Nonqualified Executive Retirement Plan equal to 22% of the base salary and bonus paid to him during
 such quarter. The agreement also prohibits Mr. Fine from competing with ITIC and its parent, subsidiaries
 and affiliates in the State of North Carolina while employed by ITIC and for a period of two years following
 termination of his employment. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 employment agreement states that if ITIC terminates Mr. Fine&#146;s employment for any reason other than
 cause, death, disability, or retirement prior to Mr. Fine reaching eligible retirement age, then he
 shall receive, among other things, his annual salary for a period of five years payable on a monthly
 basis and a lump sum payment equal to the amount that ITIC would have contributed to his Nonqualified
 Executive Retirement Plan over the five year period following his termination. In addition, Mr. Fine&#146;s
 stock options would immediately vest. The employment agreement also allows Mr. Fine to voluntarily terminate
 the agreement in the event that ITIC materially breaches the agreement and does not cure the breach
 within thirty days after receiving notice thereof. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITIC
 entered into substantially identical employment agreements with James A. Fine, Jr. and W. Morris Fine
 dated as of November 17, 2003. These agreements include base salaries of $201,000 per year, however.
 </FONT></P>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>
<A name=A042>SHAREHOLDER PROPOSALS FOR 2005 ANNUAL MEETING</A> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder
 proposals to be presented at the 2005 Annual Meeting of Shareholders must be received by the Company
 on or before December 15, 2004 to be considered for inclusion in the Company&#146;s proxy materials relating
 to that meeting. If a shareholder notifies the Company after February 28, 2005 of an intent to present
 a proposal at the Company&#146;s 2005 Annual Meeting of Shareholders, the Company will have the right to
 exercise its discretionary voting authority with respect to such proposal without including information
 regarding such proposal in its proxy materials. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
 shareholder that wishes to nominate a director for election at the 2005 Annual Meeting should send his
 or her recommendation to the attention of the Secretary, Investors Title Company, P.O. Drawer 2687,
 Chapel Hill, North Carolina 27515-2687, no later than February 28, 2005. The nominee&#146;s name, age, business
 address, residential address, principal occupation and the number of shares of common stock beneficially
 owned by the nominee must be provided with the nomination. The nominating shareholder must also provide
 a signed consent of the nominee to serve, if elected, as a director of the Company, and shall include
 all other information that would be required under the rules of the SEC in the Proxy Statement soliciting
 proxies for election of the nominee for director. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>BY ORDER OF THE BOARD OF DIRECTORS </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>W. Morris Fine<BR>Secretary </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>April 19, 2004 </FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Page Number Center w/ Rule" -->
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>15</FONT></P>

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</TABLE>

<BR>
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<TD><BR>
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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>INVESTORS TITLE COMPANY<BR>
<A name=A043>AUDIT COMMITTEE CHARTER </A></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B>I. <U>Purpose of Committee</U></B>. The Committee
 is appointed by the Board of Directors for the primary purposes of: </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;A.
 Assisting the Board in its oversight of the quality and integrity of the Company&#146;s financial statements,
 the Company&#146;s compliance with legal and regulatory requirements, the Company&#146;s overall risk management
 profile, the independent auditor&#146;s qualifications and independence, and the performance of the Company&#146;s
 internal audit function and independent auditors; and </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;B.
 Preparing the Audit Committee Report to be included in the Company&#146;s proxy statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->

<P><FONT face="Times New Roman, Times, Serif" size=2><B>II. <U>Duties and Responsibilities</U>.</B> The
 Committee&#146;s primary responsibility is the oversight of financial statements prepared by Company management.
 To carry out this responsibility and others delegated to it by the Board, the Committee will: </FONT>
</P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.
 General. </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
 Develop and maintain an open dialogue with the Board, the Company&#146;s independent auditors, &nbsp;&nbsp;&nbsp;
 the Company&#146;s internal auditors, and the financial and general managers of the Company; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
 Perform any other duties that the Committee deems appropriate, or that are requested by the Board, consistent
 with this charter, the Company&#146;s By-laws, and applicable laws and regulations; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
 At least annually, review and update this charter, which will be disclosed in the Company&#146;s proxy statement
 at least once every three years as required by the SEC&#146;s proxy rules; and </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
 Review with the Board any significant issues that arise with respect to the items listed above. </FONT>
</P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.
 The Company&#146;s Financial Statements and Published Information. </B></FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
 At least annually, review: </FONT></P>

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<P><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;&nbsp;&nbsp;&nbsp;&nbsp;a.
 Major issues regarding accounting principles and financial statement presentations, including significant
 changes in the Company&#146;s selection or application of accounting principles, as well as the clarity and
 completeness of the Company&#146;s financial statements; </FONT></P>

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<P><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;&nbsp;&nbsp;&nbsp;&nbsp;
 b. Analyses prepared by management and/or the independent auditor setting forth significant financial
 reporting issues and judgments made in connection with the preparation of the financial statements;
 and </FONT></P>

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<P><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;&nbsp;&nbsp;&nbsp;&nbsp;
 c. The effect of regulatory and accounting initiatives, as well as off-balance sheet structures, on
 the financial statements of the Company; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 2. Discuss the annual audited financial statements and quarterly financial statements, including matters
 outlined in SAS No. 61, Communications with Audit Committees, with Company management and the Company&#146;s
 independent auditors; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 3. Review the periodic reports of the Company with Company management and the Company&#146;s independent
 auditor prior to filing of the reports with the SEC; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 4. Discuss the Company&#146;s earnings releases (paying particular attention to any use of &#147;pro forma&#148; or
 &#147;adjusted&#148; non-GAAP information), as well as financial information and earnings guidance provided to
 analysts and ratings agencies; and </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 5. Participate in a telephonic meeting among Company management and the Company&#146;s independent auditor
 prior to earnings release. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C.
 Performance and Independence of the Company&#146;s Independent Auditors.</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 1. At least annually, obtain and review a written report by the independent auditors describing (i)
 the independent auditing firm&#146;s internal quality control procedures, (ii) any material issues raised
 by the most recent internal quality control review, or peer review, of the independent auditing firm,
 (iii) any material issues raised by any inquiry or investigation by governmental authorities within
 the preceding five years with regard to one or more independent audits carried out by the independent
 auditing firm, (iv) any steps taken to deal with any issues raised in such internal quality control
 reviews, peer reviews, or governmental or professional authority inquiries or investigations, (v) any
 management letter provided by </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>16</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>the independent auditors and Company management&#146;s response
 to that letter, and (vi) all relationships between the independent auditor and the Company; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 2. Annually evaluate the independent auditor&#146;s qualifications, performance, and independence, including
 a review and evaluation of the lead partner, taking into account the opinions of Company management
 and the Company&#146;s internal auditors, and to report its conclusions to the Board; and </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 3. Periodically meet separately with independent auditors. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>
 D. Review of Services and Audit by Independent Auditor.</B> </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 1. Appoint, retain, compensate, evaluate, and terminate the Company&#146;s independent auditors, with sole
 authority to approve all audit engagement fees and terms, as well as all non-audit engagements with
 the independent auditors (These duties are non-delegable); </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 2. At least annually, pre-approve all audit and non-audit services to be provided to the Company by
 its independent auditors pursuant to the Audit and Non-audit Services Pre-approval Policy; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 3. Ensure that the Company&#146;s independent auditors do not perform any non-audit services that are prohibited
 by law or regulation; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 4. Review the scope of the annual audit to be performed by the Company&#146;s independent auditors; </FONT>
</P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 5. Review with the independent auditor any audit problems or difficulties encountered in the course
 of the audit work, and Company management&#146;s responses; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 6. Discuss with Company management and the Company&#146;s independent auditors any accounting adjustments
 that were noted or proposed by the independent auditors but were passed (as immaterial or otherwise);
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 7. Review the audit report and recommendations submitted by the Company&#146;s independent auditors; </FONT>
</P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 8. Review the report required by Section 10A(k) of the Securities Exchange Act of 1934 from the independent
 auditor concerning (i) critical accounting policies and practices used in the audit, (ii) alternative
 treatments of financial information within GAAP that have been discussed with Company management, ramifications
 of the use of such alternative disclosure and treatments, and the treatment preferred by the independent
 auditor, and (iii) other material written communications between the independent auditor and Company
 management. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.
 Review of the Company&#146;s Internal Audit Department. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 1. Periodically meet with internal auditors; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 2. Review the annual internal audit plan; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 3. Receive and review summaries and reports from the internal auditor with respect to its review of
 Company operations and the systems of internal controls; and </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 4. Review the activities and structure of the internal audit department. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.
 Controls within the Company. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 1. Annually review significant issues regarding the adequacy of the Company&#146;s internal controls and
 any changes adopted in light of material control deficiencies; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 2. Review disclosures from the Company&#146;s Chief Executive Officer and Chief Financial Officer regarding
 compliance with their certification obligations as required under the Sarbanes-Oxley Act of 2002 and
 the rules promulgated thereunder, including the Company&#146;s disclosure controls and procedures and internal
 controls for financial reporting; and </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 3. Establish procedures for the receipt, retention, and treatment of complaints received by the Company
 regarding accounting, internal accounting controls, or auditing matters, and the confidential, anonymous
 submission by Company employees of concerns regarding accounting or auditing matters. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
 the Audit Committee has the responsibilities and powers set forth in this Charter, it is not the duty
 of the Audit Committee to prepare financial statements, to plan or conduct audits or to determine that
 the Company&#146;s financial statements and disclosures are complete and accurate and are in accordance with
 generally accepted accounting principles and applicable rules and regulations. These are the responsibility
 of Company management and the Company&#146;s independent auditors. </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>17</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>III. <U>Authority to Retain Experts</U>.</B> The
 Committee has the authority to choose, hire, direct, and, if appropriate, terminate such experts as
 it deems necessary in the performance of its duties. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>IV. <U>Audit Committee Financial Expert</U>.</B>
 At least one member of the Committee must have accounting or related financial management expertise
 as determined by the Board in accordance with applicable listing standards. At least one member of the
 Committee must be an &#147;audit committee financial expert&#148; as defined by the Securities and Exchange Commission.
 The person with accounting or related financial management expertise and the &#147;audit committee financial
 expert&#148; can be one and the same. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B>V. <U>Other Charter Provisions</U>.</B> Information
 regarding Committee member qualifications, Committee member appointment and removal, committee structure
 and operations, and Committee reporting to the Board are set forth in the Investors Title Company Board
 of Directors Standard Committee Charter Provisions. </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>18</FONT></P>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>INVESTORS TITLE COMPANY<BR>
<A name=A044>BOARD OF DIRECTORS STANDARD COMMITTEE CHARTER PROVISIONS</A> </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
 Committee of Investors Title Company&#146;s Board of Directors has its own charter. Set forth below are provisions
 that are applicable to every charter of a Committee of the Board of Directors. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;<B>I. <U>Committee Member Qualifications</U>.</B>
 In order to be eligible to serve on a Committee, a Board member must meet the following requirements:
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.
 S/he must have, or obtain within a reasonable period of time after appointment to the Committee, familiarity
 with the key issues relevant to the work of the Committee. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.
 For the Audit, Compensation, and Nominating Committees, s/he must be independent as determined by the
 Board in accordance with applicable listing standards and legislation. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.
 For the Audit Committee: </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 1. Except for his/her director&#146;s fees, s/he and members of his/her immediate family and entities of
 which s/he is a partner, member, officer, director, or significant (greater than 10%) shareholder must
 not receive any compensation from the Company including, but not limited to, fees paid for accounting,
 consulting, legal, investment banking, or financial advisory services; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 2. S/he must not be the beneficial owner, directly or indirectly, of more than ten percent (10%) of
 any class of the Company&#146;s voting equity securities, or be an executive officer of the Company; </FONT>
</P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 3. S/he must not be serving simultaneously on the audit committees of more than three (3) other companies,
 unless the Board determines that such service will not impair his/her ability to serve on the Company&#146;s
 Audit Committee; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 4. S/he must be financially literate, as determined by the Board. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B>II. <U>Committee Member Appointment and Removal.</U></B>
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>A.
 Appointment</B>. At the first meeting of the Board following the annual meeting of shareholders, the
 Board will, by resolution, designate an Audit Committee, a Compensation Committee, and a Nominating
 Committee of the Board, each having at least three (3) members. The Board may appoint additional Committee
 members throughout the year as it deems necessary or advisable. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>B.
 Removal</B>. The Board may remove a member from the Committee at any time; provided, however, that if
 removing a member of the Committee would cause the Committee to have fewer than three (3) qualified
 members, then the Board must at the same time appoint an additional member to the Committee so that
 the Committee will have at least three (3) qualified members. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>III. <U>Committee Structure and Operation.</U></B>
 </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>A.
 Appointment of Chair.</B> At the time the Board appoints members of the Committee, it will appoint one
 of the members to act as Chair of the Committee and may, in its discretion, also appoint a Vice Chair
 of the Committee. In addition to chairing meetings of the Committee, the Chair (i) will be the liaison
 to Company management, (ii) will be responsible for working with Company management to set meeting agendas,
 (iii) will report to the Board pursuant to Section IV below, and (iv) will be available to answer questions
 at annual meetings of shareholders. The Chair may temporarily delegate his or her responsibilities to
 the Vice Chair and, if there is not a Vice Chair, to another Committee member if s/he is not available
 to perform them. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>B.
 Removal of Chair.</B> The Board may remove the Chair at any time, provided that the Board appoints a
 new Chair at the same time. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>C.
 Quorum.</B> A majority of the Committee will constitute a quorum. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>D.
 Voting.</B> Each member of the Committee will have one vote. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>E.
 Required Vote.</B> Action may be taken with the approval of a majority of the Committee present at a
 duly constituted meeting. Action also may be taken with the unanimous written approval of all Committee
 members. </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>19</FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>F.
 Delegation.</B> Except as otherwise prohibited, the Committee may delegate to the Chair or to a subcommittee
 the right to review and determine any issue on behalf of the entire Committee, and the Committee may
 also delegate administrative tasks to employees of the Company; provided, however, that no such delegation
 can alter the fundamental duties and responsibilities of the Committee. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>G.
 Meetings.</B> Unless the Committee determines that fewer meetings are required in a particular year,
 the Audit Committee will meet four (4) times per year. The Committee will meet at the request of any
 member of the Committee or any two (2) members of the Board, at the time specified in the request. Meetings
 may be held in person, by telephone or by other form of interactive real-time electronic communication.
 Notice of meetings will be given to each member, normally at least one day before the meeting. Any meeting
 at which all members are present will be a duly called meeting, whether or not notice was given. Members
 of the Company&#146;s management, other members of the Board, or third parties may be present at the Committee&#146;s
 meetings; provided, however, that the Audit and Compensation Committees meet at least once per year
 without the Chief Executive Officer or other employees of the Company or its subsidiaries present to
 discuss any matters that the Committee deems appropriate. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2><B>IV. <U>Committee Reports to the Board</U>.</B> At
 the next meeting of the Board after any Committee meeting, the Chair or his/her nominee will provide
 the Board with a report on the matters addressed at the Committee meeting. </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B>V. <U>Definitions</U>.</B> As used herein
 and in each Committee charter, &#147;Company&#148; means Investors Title Company and its subsidiaries and &#147;Board&#148;
 means the Board of Directors of Investors Title Company. </FONT></P>
<BR>
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<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>20</FONT></P>

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<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Investors Title Company</B><BR>121 North Columbia
 Street, Chapel Hill, North Carolina 27514 </FONT></P>
<BR>
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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>PROXY<BR>PLEASE SIGN ON REVERSE SIDE AND RETURN IN THE ENCLOSED POSTAGE-PAID<BR>ENVELOPE. </FONT></H1>

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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>This Proxy is Solicited on Behalf of the Board of Directors for<BR>the Annual Meeting of Shareholders on May 19, 2004 </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>The undersigned hereby appoints J. Allen Fine and W.
 Morris Fine, and each of them, each with power of substitution, as lawful proxies, to vote all shares
 of common stock of Investors Title Company that the undersigned would be entitled to vote if personally
 present at the Annual Shareholders&#146; Meeting of Investors Title Company to be held at The Siena Hotel
 located at 1505 East Franklin Street, Chapel Hill, North Carolina on Wednesday, May 19, 2004 at 11:00
 A.M. E.D.T., and at any adjournment thereof, upon such business as may properly come before the meeting.
 Please sign on reverse exactly as name appears. When shares are held by joint tenants, both should sign.
 When signing as attorney, executor, administrator, trustee or guardian, please give full title as such.
 If a corporation, please sign in full corporate name by President or other authorized officer. If a
 partnership, please sign in partnership name by authorized person. Please sign and date on reverse side
 and return in the enclosed postage-paid envelope. </FONT></P>
<BR><BR>
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<H1 align=left><FONT face="Times New Roman, Times, Serif" size=2>SHAREHOLDER &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUMBER OF SHARES<BR>DIRECTORS RECOMMEND A VOTE FOR ELECTION OF THE DIRECTOR NOMINEES LISTED BELOW. </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Mark &#147;X&#148; for only one box. If no direction is indicated,
 shares will be voted &#147;<B>FOR</B>&#147; the following director nominees: &nbsp;&nbsp; </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>1 - <B>J. ALLEN FINE</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 2 - <B>DAVID L. FRANCIS</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 - <B>A. SCOTT PARKER III </B><BR>(&nbsp;&nbsp;)
 <B>FOR</B> all nominees (&nbsp;&nbsp;) <B>WITHHOLD</B> all nominees (&nbsp;&nbsp;) Withhold authority
 to vote for any individual nominee. Write number(s) of nominee(s) below. </FONT></P>
<BR>
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<P><FONT face="Times New Roman, Times, Serif" size=2><B>In their discretion, the proxies are authorized
 to vote in their best judgment with respect to any other business that may properly come before the
 meeting.</B> </FONT></P>

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<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dated &nbsp;_______________, 2004
</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Signature)_________________<BR>
(Signature if held jointly)____________________ <BR>

</FONT></TD></TR>
</TABLE>


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