CITIZENS, INC. NET INCREASES 17.7%

Austin, Texas -- November 14, 2002 -- Citizens, Inc. (NYSE: CIA), reported net income of $2.9 million or $0.10 per share for the first nine months of 2002, a 17.7% increase over the same period in 2001 when earnings were $2.5 million or $0.09 per share. Increases in premiums and investment income during the period contributed to the improvement in 2002 operating results.

Total revenue for the first nine months of 2002 reached $59.3 million, an increase of 20%, from $49.4 million, over the same period in 2001. Premium income increased 23.7% to $48 million during this period. The March 2002 acquisition of Combined Underwriters Life Insurance Company and Lifeline Underwriters Life Insurance Company accounted for $7.1 million of the increase. Additionally, demand for the Companys U.S. dollar-denominated whole life insurance products worldwide increased 13% over the previous year. Net investment income also grew by 4.5% through September 30, 2002 to $10.6 million as a result of growth in the Companys invested asset base.

Net income for the three months ended September 30, 2002 was $223,000, or $0.01 per share, compared to $1.4 million, or $0.05 per share, for the same quarter in 2001. Unusual operating expenses and the amortization of cost of insurance acquired related to the March 2002 acquisitions were the primary reasons for the decreased earnings. Revenues for the quarter increased to $22.3 million, compared to $17.6 million for the same period in 2001. Increased production of new life premium, augmented by increased accident and health revenues primarily related to the Companys recent acquisitions, increased premium income 33% during the quarter to $18.5 million. The acquisitions also contributed $3.6 million to the increase in premiums. Unusual expenses of over $300,000 were incurred during the quarter related to the listing of shares issued in the acquisition and the 15% stock dividend paid earlier in the year, as well as costs associated with listing the Companys Class A Common Stock on the New York Stock Exchange. The amortization of cost of insurance acquired during the period was $1.1 million, an increase of 264.9% over the previous year, with such costs related to the March acquisitions.

Assets at September 30, 2002 totaled $320.5 million, compared to $282.1 million at December 31, 2001, an increase of 13.6%. Stockholders equity increased, from $82.7 million at year-end 2001 to $97.6 million at September 30, 2002. Asset and equity growth are also attributable primarily to the March acquisitions.

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On November 11, the Company 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.

About Citizens, Inc.

Citizens, Inc. is a financial services company listed on the New York Stock Exchange under the symbol CIA. Its business development 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 worldwide and through 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 $8.16 on November 13, 2002.

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

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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.