FRANKFORT, KY (September 28, 1999) - Kentucky Investors, Inc. announced that it has entered into a share exchange agreement with Investors Heritage Life Insurance Company.  Kentucky Investors has owned the majority interest in Investors Heritage since 1963 and currently owns approximately 74% of Investors Heritage. Under the share exchange agreement Kentucky Investors will acquire all of the outstanding Investors Heritage common stock and Investors Heritage shareholders will receive 1.24 shares of Kentucky Investors common stock for each share of Investors Heritage common stock. The companies plan to complete the transaction prior to December 31, 1999.

Harry Lee Waterfield II, Chairman and President of Kentucky Investors, Inc. said "this share exchange will allow Investors Heritage stockholders, many of whom have been with us since the inception of the company in 1960, to share in the continued growth of both companies."

Investors Heritage Life Insurance Company markets primarily pre-need/final expense insurance through funeral homes, and credit related insurance through financial institutions.  Investors Heritage also offers traditional life and group life insurance products and annuities. In addition to majority ownership of Investors Heritage, Kentucky Investors also owns an insurance marketing company and a printing company. 

For information contact Jane Jackson at (502) 223-2361 ext. 305.

Statements contained in this release which are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks and uncertainties (contained in the Company's SEC filings) which could cause actual results to differ materially from those projected.  SEC filings may be obtained from the SEC or by contacting the Company.