CITIZENS, INC. TO ACQUIRE LIFE INSURANCE HOLDING COMPANY

Austin, Texas -- November 11, 2002 -- Citizens, Inc. (NYSE: CIA), announced a definitive agreement to acquire all outstanding shares of First Alliance Corporation (First Alliance") for shares of Citizens Class A Common stock to be offered through a prospectus. First Alliance is the parent of First Alliance Insurance Company, a Kentucky life insurer.

The agreement is subject to approval by First Alliances shareholders and insurance regulatory authorities in Kentucky, Missouri and Arkansas. The exchange will be based upon a market value of $3.02 per share for First Alliance, while the price for the Citizens shares will be based upon its average 20 day price preceding closing. The transaction is valued at approximately $17.2 million. Following the closing, which is expected in the first half of 2003, First Alliance will continue to operate from its offices in Lexington, Kentucky with its current staff.

About Citizens, Inc.
Citizens, Inc. is a financial services company whose growth strategy is to achieve $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force by 2010 targeting the sale of U.S. dollar whole life insurance policies in the United States as well as world-wide and through the acquisition of other life insurance companies.

Citizens is included in the Russell 2000® Index, which measures the performance of the largest companies in the U.S. stock market based on market capitalization. Citizens stock closed at $7.99 on November 8, 2002.

Additional information is available at the Companys web site: www.citizensinc.com.

# # #

_________________________________________________________________________________________________________
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as may", will", expect", anticipate" or continue" or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K for the fiscal year ended December 31, 2001, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.