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Donegal Group Inc. Advises Stockholders Not to Take Any Action Until the Board Makes a Recommendation Regarding Tender Offer of

Donegal Group Inc. Advises Stockholders Not to Take Any Action Until the Board
Makes a Recommendation Regarding Tender Offer of Gregory Mark Shepard

MARIETTA, Pa., March 22, 2013 (GLOBE NEWSWIRE) -- Donegal Group Inc. ("DGI")
today reported the commencement of an unsolicited tender offer for 962,636
shares of DGI's Class B common stock at a price of $30 per share in cash by
Gregory Mark Shepard. The offer states it will expire April 19, 2013.

DGI's Board of Directors, in the exercise of its fiduciary duties, will advise
the holders of DGI Class B common stock by April 3, 2013:

  *whether DGI recommends acceptance or rejection of the tender offer,
    expresses no opinion and remains neutral toward the tender offer or is
    unable to take a position with respect to the tender offer; and
  *the reasons for the position DGI takes with respect to the tender offer.

DGI will also file the recommendation of its Board of Directors with the
Securities and Exchange Commission (the "SEC") on a Schedule 14D-9
solicitation/recommendation statement.

DGI urges the holders of its Class B common stock to take no action with
respect to the tender offer until DGI's Board of Directors makes its
recommendation.

Important Information and Where to Find It

This communication does not constitute an offer to buy or the solicitation of
an offer to sell any securities.DGI intends to file a
solicitation/recommendation statement on Schedule 14D‑9 with the SEC with
respect to the tender offer no later than April 3, 2013.DGI urges the holders
of its Class B common stock to read the solicitation/recommendation statement
and any other documents it files with the SEC when they become available
because they will contain important information.Stockholders may obtain,
without charge, a copy of the solicitation/recommendation statement and other
documents (when available) that DGI files with the SEC at the SEC's website at
www.sec.gov and DGI's website at www.donegalgroup.com.In addition, the
solicitation/recommendation statement and other documents (when available)
that DGI files with the SEC may be obtained, without charge, from DGI by
writing to DGI's corporate secretary, Sheri O. Smith, at its principal
executive offices at 1195 River Road, P.O. Box 302, Marietta, Pennsylvania
17547 or by e-mail to sherismith@donegalgroup.com.

About Donegal Group Inc.

Donegal Group Inc. is an insurance holding company with insurance subsidiaries
offering personal and commercial property and casualty lines of insurance in
22 Mid-Atlantic, Midwestern, New England and Southern states.The insurance
subsidiaries of DGI and Donegal Mutual Insurance Company conduct business
together as the Donegal Insurance Group. The Donegal Insurance Group has an
A.M. Best rating of A (Excellent).Donegal Mutual Insurance Company and DGI
together own Donegal Financial Services Corporation, a grandfathered unitary
savings and loan holding company that owns Union Community Bank FSB, a federal
savings bank.

DGI's Class A common stock and Class B common stock trade on NASDAQ under the
symbols DGICA and DGICB, respectively.

CONTACT: Jeffrey D. Miller
         Senior Vice President and Chief Financial Officer
         Phone: (717) 426-1931
         Fax: (717) 426-7031
         E-mail: investors@donegalgroup.com