EMC Insurance Group Inc. Announces Stock Purchase Program Initiated by

    Business Editors

    DES MOINES, Iowa--(BUSINESS WIRE)--May 12, 2005--EMC Insurance Group Inc. (Nasdaq:EMCI) (the "Company") today announced that its parent company, Employers Mutual Casualty Company, has initiated a $15 million stock purchase program under which Employers Mutual will purchase shares of the Company's common stock in the open market. This purchase program is effective immediately and does not have an expiration date. Because Employers Mutual currently owns a majority of the Company's common stock, the purchase program will be conducted under the provisions of Securities and Exchange Commission Rule 10b-18, which provides a "safe harbor" from liability for manipulation of the stock price by reason of the manner, timing, price and volume of purchases of stock in the open market.
    EMC Insurance Group Inc., the publicly-held insurance holding company of EMC Insurance Companies, owns subsidiaries with operations in property and casualty insurance and reinsurance. EMC Insurance Companies is one of the largest property and casualty groups in Iowa and among the top 60 insurance groups nationwide. For more information, visit our website www.emcinsurance.com.
    The Private Securities Litigation Reform Act of 1995 provides issuers the opportunity to make cautionary statements regarding forward-looking statements. Accordingly, any forward-looking statement contained in this report is based on management's current beliefs, assumptions and expectations of the Company's future performance, taking into account all information currently available to management. These beliefs, assumptions and expectations can change as the result of many possible events or factors, not all of which are known to management. If a change occurs, the Company's business, financial condition, liquidity, results of operations, plans and objectives may vary materially from those expressed in the forward-looking statements The risks and uncertainties that may affect the actual results of the Company include, but are not limited to, the following: catastrophic events and the occurrence of significant severe weather conditions; the adequacy of loss and settlement expense reserves; state and federal legislation and regulations; changes in our industry, interest rates or the performance of financial markets and the general economy; rating agency actions and other risks and uncertainties inherent to the Company's business. When we use the words "believe", "expect", "anticipate", "estimate" or similar expressions, we intend to identify forward-looking statements. You should not place undue reliance on these forward-looking statements.

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CONTACT: EMC Insurance Group Inc., Des Moines Investors: Anita Novak, 515-280-2515 or Media: Lisa Hamilton, 515-362-7589

KEYWORD: IOWA INDUSTRY KEYWORD: INSURANCE BANKING SOURCE: EMC Insurance Group Inc.

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