Unitrin to Exit Automobile Finance Business

CHICAGO--(Business Wire)--
Unitrin, Inc. (NYSE: UTR) announced today that its subsidiary, Fireside Bank
("Fireside"), will suspend all new lending activity as part of a plan to exit
the automobile finance business. This decision follows a review by Unitrin of
strategic alternatives for Fireside and is expected to allow Unitrin to
substantially recoup its investment in Fireside of approximately $240 million
over time. Unitrin stressed that Fireside is solvent, with tangible equity
capital of over 15% at December 31, 2008, and that Unitrin`s decision to exit
the automobile finance business is motivated by a desire to redeploy its
investment in Fireside. The exit plan envisions an orderly wind-down of
Fireside`s operations over the next several years. Fireside will continue to
collect outstanding loan balances and make interest payments and redemptions on
outstanding certificates of deposit in the ordinary course of business.

Over the period of the wind-down, Unitrin currently estimates that Fireside will
incur early lease termination costs ranging from $3 million to $6 million after
tax and employee termination costs ranging from $6 million to $10 million after
tax. The amounts and timing of these costs are subject to various contingencies
and uncertainties, the outcomes of which are not possible to predict with
accuracy at the present time.

Fireside, based in Pleasanton, California, engages exclusively in the financing
of automobiles through the purchase of retail installment contracts from
automobile dealers. The borrowers under contracts purchased by Fireside
typically have marginal credit histories. Fireside funds its lending activities
exclusively through FDIC-insured certificates of deposit and does not sell or
securitize any portion of its loan portfolio. Fireside has reported net losses
of $22.3 million and $38.8 million for the years ended December 31, 2008 and
2007, respectively, due primarily to substantial increases in its provision for
loan losses attributable to deteriorating conditions in the economy.

In announcing its plan to exit the automobile finance business, Unitrin`s Chief
Executive Officer, Don Southwell, made the following observations:

"The decision to exit the automobile finance business was an extremely difficult
one. Fireside Bank has been an important contributor to our profits over the
years and Fireside`s management has done a terrific job of adapting to
unprecedented economic and market conditions. However, the turmoil in the
economy, coupled with changes in the used car marketplace and increased capital
requirements has led to this decision. In an era of scarce capital resources for
all financial institutions, Unitrin`s management and Board of Directors believe
that it is in the best interests of Unitrin`s shareholders to redeploy its
investment in Fireside in order to reduce the overall risk profile of Unitrin
and to provide Unitrin with enhanced liquidity and access to additional capital
resources. While we have been in contact with several interested buyers, we
believe that exiting the automobile finance business in an orderly manner over
time provides the best value to Unitrin`s shareholders while at the same time
protecting the interests of depositors and other stakeholders of Fireside. Our
preliminary estimate is that the plan should allow Unitrin largely to recoup its
investment in Fireside over the next several years."

This release contains information that includes or is based upon forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking statements
give expectations or forecasts of future events. The reader can identify these
statements by the fact that they do not relate strictly to historical or current
facts. These include statements relating to future actions or events and the
outcome of contingencies.

Any or all forward-looking statements may turn out to be wrong, and,
accordingly, readers are cautioned not to place undue reliance on such
statements, which speak only as of the date of this release. Such statements can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many factors will be important in determining Unitrin's actual
future results. These statements are based on current expectations and the
current economic environment. They involve a number of risks and uncertainties
that are difficult to predict. These statements are not guarantees of future
performance; actual results could differ materially from those expressed or
implied in the forward-looking statements. No assurances can be given that the
results contemplated in any forward-looking statements will be achieved or will
be achieved in any particular timetable. Unitrin assumes no obligation to
publicly correct or update any forward-looking statements as a result of events
or developments subsequent to the date of this release. The reader is advised,
however, to consult any further disclosures Unitrin makes on related subjects in
filings made with the Securities and Exchange Commission.

Unitrin is a financial services company focused on creating shareholder value by
providing a diverse array of insurance and automobile finance products and
services for individuals, families and small businesses.

Among the brands in Unitrin's Property and Casualty Insurance businesses are
Kemper1 and Unitrin Specialty, which sell personal and commercial insurance
through networks of independent agents, and Unitrin Direct, which sells
automobile and homeowners insurance directly to consumers or through
employer-sponsored voluntary benefit programs. Unitrin's Life and Health
Insurance businesses bring a high-level of personalized service to their
customers. Unitrin's automobile finance subsidiary, Fireside Bank, specializes
in automobile loans for the purchase of pre-owned vehicles. Additional
information about Unitrin is available by visiting its website
(www.unitrin.com).

1 Unitrin uses the registered trademark "Kemper" under license, for personal
lines insurance only, from Lumbermens Mutual Casualty Company, which is not
affiliated with Unitrin.

Unitrin, Inc.
David F. Bengston, 312-661-4930
investor.relations@unitrin.com

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