Bankers Warranty Group, Inc. Acquires

VAC Service Corporation

St. Petersburg, FL - (December 8, 2005) - Bankers Warranty Group, Inc. a wholly owned subsidiary of Bankers Financial Corporation, announces the acquisition of the assets of VAC Service Corporation, one of the nation's leading administrators of extended service plans and manufacturer warranty programs.

The acquisition, effective today, was announced by Kevin Rupkey, President and Chief Executive Officer of Bankers Warranty Group, and James R. Tucker, former President and Chief Executive Officer of VAC Service Corp.

"We're delighted to announce this acquisition, which is an important strategic move for Bankers into the consumer electronics warranty business," said Rupkey. This acquisition is a natural extension of another affiliate, Bonded Builders Risk Management, a leader in the home-warranty industry.

Tucker noted that, "VAC faces a brighter-than-ever future, bolstered by the financial strength and stability which Bankers Financial Group brings to the company." Until today, VAC was wholly-owned by Tucker, who founded the company in 1980.

VAC Service Corp. administers warranty and extended service programs for a wide variety of products, including consumer and office electronics, appliances, lawn and garden equipment, power tools, fitness equipment, cameras, jewelry, furniture, automobile tires, and more. VAC also offers software support, PC installation, and a wide variety of tele-services.

Bankers Warranty Group is led by Kevin Rupkey a service contract industry veteran. Mr. Rupkey, spent fourteen years at GE in a variety of capacities. He later ran Warrantech Consumer Product Services and Warrantech Home Service Company, and served as President and Chief Operating Officer of Assurant Consumer Services (a.k.a. Federal Warranty Service Corp.), a Fortis subsidiary. Most recently he served as Vice President and Chief Operating Officer for 2-10 Home Buyers Resale Warranty Corp. Rupkey brings with him a proven track record of success in leading high quality warranty organizations as well as a wealth of experience in the service contract industry.

Also joining the management team is Frank Trigo, a former executive of Assurant Consumer Services, HMS/Cross Country Home Services and Panasonic Company. Mr. Trigo has over fifteen years of combined experience in the retail, service contract and consumer electronics industries.

Bankers Warranty Group is headquartered at 334 County Road 49, P.O. Box 730, Middletown, NY 10940-0730. Visit Bankers Warranty Group's web site at (www.bankerswarrantygroup.com) or call 800-431-5843. In addition to its executive offices, Bankers Warranty Group maintains regional offices in Atlanta, GA; Cincinnati, OH; Chicago, IL; and Orlando, FL.

VAC Service Corp. of Canada, Ltd. (www.vacservice.ca), maintains regional sales offices in Toronto, ON and Montreal, QUE, as well as a full service (sales, administration, and tele-services) office in Ottawa, delivering an uninterrupted service program 24 hours a day, 365 days a year.

Bankers Financial Corporation, with over $350 million in assets, was founded in 1976. The organization has grown from a small insurance company to a diverse corporation known for its innovative insurance products and superior customer service.