The Board of Directors of Donegal Group Inc. Recommends That Its Class B Stockholders Reject the Tender Offer of Gregory Mark

The Board of Directors of Donegal Group Inc. Recommends That Its Class B
Stockholders Reject the Tender Offer of Gregory Mark Shepard

MARIETTA, Pa., April 3, 2013 (GLOBE NEWSWIRE) -- Donegal Group Inc.
(Nasdaq:DGICA) (Nasdaq:DGICB) reported that it had filed a Schedule 14D-9
solicitation/recommendation statement with the SEC today. The Schedule 14D-9
reports the unanimous recommendation of DGI's Board of Directors that the
holders of DGI's Class B Common Stock reject the unsolicited tender offer for
962,636 shares of DGI's Class B Shares 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 has thoroughly evaluated and assessed the conditions
to the Offer that Shepard established, together with the assistance of a
report and recommendations submitted to DGI's Board of Directors by a special
committee of five directors independent of Donegal Mutual Insurance Company
and advised by independent legal counsel. Based upon its evaluation and
assessment of the conditions to the Offer, including the federal and state
regulatory approvals Shepard must obtain before he can legally consummate his
offer, DGI's Board of Directors unanimously determined that his offer is
illusory because Shepard will not be able to attain the conditions to the
Offer before its expiration date or within a reasonable period of time after
the expiration date. Accordingly, the DGI Board of Directors recommends that
the holders of DGI Class B Shares REJECT the Offer and NOT tender their Class
B Shares to Shepard for purchase pursuant to the Offer.

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 urges the holders of its Class B common
stock to read the solicitation/recommendation statement, as well as any other
documents DGI subsequently files with the SEC when such documents become
available because they will contain important information. Holders of Class B
Shares 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, DGI's 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