SOUTHFIELD, Mich., Oct. 18 /PRNewswire-FirstCall/ -- First Mercury Financial Corporation (NYSE:FMR) today announced that it has priced its initial public offering of 9,705,882 shares of its common stock at a price of $17.00 per share. First Mercury has granted the underwriters a 30-day option to purchase an additional 1,455,882 common shares from the Company to cover over-allotments, if any. The net offering proceeds to the Company, after the payment of underwriting discounts, commissions and estimated expenses related to the offering, will be approximately $151.0 million (assuming the underwriters' over-allotment option is not exercised). The shares of First Mercury Financial Corporation are scheduled to begin trading on October 18, 2006, on the New York Stock Exchange under the ticker symbol "FMR." J.P. Morgan Securities Inc. and Keefe, Bruyette & Woods Inc. are serving as joint book-running managers of the offering and William Blair & Company; Cochran Caronia Waller; Dowling & Partners Securities; A.G. Edwards and Ferris, Baker Watts Incorporated are acting as co-managers. A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. A copy of the prospectus related to this offering may be obtained from J.P. Morgan Securities Inc., Prospectus Department, 4 Chase Metrotech Center, CS Level Brooklyn, NY 11245 Telephone: 718-242-8002 or Keefe, Bruyette & Woods, Inc., 787 Seventh Avenue, 4th Floor, New York, NY 10019, Attention: Equity Syndicate, Telephone: 212-887-8968. About First Mercury Financial Corporation First Mercury Financial Corporation markets and underwrites specialty commercial insurance products, focusing on niche and underserved segments where the company has underwriting expertise and other competitive advantages. During the company's 33 years of underwriting risks, First Mercury has established CoverX(R) as a recognized brand among insurance agents and brokers. As primarily an excess and surplus (E&S) lines underwriter, First Mercury has developed the underwriting expertise and cost-efficient infrastructure which has enabled it to underwrite such risks profitably. Safe Harbor Statement This release contains forward-looking statements that relate to future periods and includes statements regarding our anticipated performance. Generally, the words "anticipates," "believes," "expects," "intends," "estimates," "projects," "plans" and similar expressions identify forward- looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: our ability to maintain or the lowering or loss of one of our financial or claims-paying ratings; our actual incurred losses exceeding our loss and loss adjustment expense reserves; the failure of reinsurers to meet their obligations; our inability to obtain reinsurance coverage at reasonable prices; the failure of any loss limitations or exclusions or changes in claims or coverage; our lack of long-term operating history in certain specialty classes of insurance; our ability to acquire and retain additional underwriting expertise and capacity; the concentration of our insurance business in relatively few specialty classes; competition risk; fluctuations and uncertainty within the excess and surplus lines insurance industry; the extensive regulations to which our business is subject and our failure to comply with these regulations; our ability to maintain our risk-based capital at levels required by regulatory authorities; our inability to realize our investment objectives; and the risks identified in our filings with the Securities and Exchange Commission, including our Registration Statement on Form S-1. Given these uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. We assume no obligation to update or revise them or provide reasons why actual results may differ. For more information on the company, please visit the company's website at http://www.firstmercury.com/ DATASOURCE: First Mercury Financial Corporation CONTACT: Leslie Loyet, Analysts/Investors, Financial Relations Board, for First Mercury Financial Corporation, +1-312-640-6672, Web site: http://www.firstmercury.com/

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