Institutional Shareholder Services Recommends Stockholders Vote FOR Signature Group Holdings, Inc. Reincorporation

Institutional Shareholder Services Recommends Stockholders Vote FOR Signature
                     Group Holdings, Inc. Reincorporation

PR Newswire

SHERMAN OAKS, Calif., Dec. 9, 2013

SHERMAN OAKS, Calif., Dec. 9, 2013 /PRNewswire/ --Signature Group Holdings,
Inc. (OTCQX: SGGH) today announced that Institutional Shareholder Services
("ISS"), a leading independent proxy voting and corporate governance advisory
firm, recommends stockholders vote "FOR" Signature's proposal to reincorporate
from Nevada to Delaware at a special meeting of stockholders on December 30,
2013. ISS's report emphasizes that the reincorporation to Delaware will
improve stockholders' rights.

ISS summarized its recommendation as follows: "A vote FOR this proposal is
warranted given that the reincorporation would ultimately be beneficial to
shareholders' rights."

Signature Chief Executive Officer, Craig Bouchard said: "We are committed to
'best in breed' corporate practices, and Delaware is recognized as the state
most attractive to the investors of large public corporations. We sincerely
appreciate the ISS recognition that our reincorporation into a Delaware
holding company is good for stockholders." Bouchard added, "The progress our
management team has made this year, including filing a $300 million shelf
registration statement, preparing to redeem the 9% Notes on December 30,
exiting legacy special situations investments, and reducing corporate overhead
has positioned us to grow. In the last six months we have exited nearly all of
our legacy special situations investments as well as some assets in
discontinued operations. I am pleased to report that we are now out of the
distressed debt business. Our attention is focused on growing our industrial
supply business organically, while increasing the scale of the Company through
material industrial and commercial acquisitions."

Signature has previously announced a special meeting of stockholders to vote
on the reincorporation proposal to be held on December 30, 2013 at 10:00 a.m.,
at the offices of Crowell & Moring LLP, 515 South Flower St., 40^th Floor, Los
Angeles CA 90071 (the "Special Meeting"). Signature and its subsidiary SGH
Holdco, Inc. filed definitive proxy materials with the Securities and Exchange
Commission ("SEC") on November 27, 2013 in connection with the Special
Meeting. STOCKHOLDERS ARE URGED TO READ THESE PROXY MATERIALS AS THEY CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED REINCORPORATION. STOCKHOLDERS HAVE
ACCESS TO FREE COPIES OF THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS
FILED WITH THE SEC THROUGH THE SEC WEBSITE AT WWW.SEC.GOV. THE PROXY
STATEMENT/PROSPECTUS AND RELATED MATERIALS MAY ALSO BE OBTAINED FOR FREE FROM
SIGNATURE BY CALLING THE CONTACT LISTED AT THE END OF THIS RELEASE.

About Signature Group Holdings, Inc.

Signature is a public company seeking to invest its capital in large,
well-managed and consistently profitable businesses concentrated primarily in
the United States industrial and commercial marketplace. The company has
significant capital resources and federal net operating loss tax carryforwards
of approximately $887.3 million. For more information about Signature, please
visit its corporate website at www.signaturegroupholdings.com.

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements, which are based on current
expectations, estimates, and projections about the Company's business and
prospects, as well as management's beliefs, and certain assumptions made by
management. Words such as "anticipates," "expects," "intends," "plans,"
"believes," "seeks," "estimates," "may," "should," "will" and variations of
these words are intended to identify forward-looking statements. Such
statements speak only as of the date hereof and are subject to change. The
Company undertakes no obligation to publicly revise or update any
forward-looking statements for any reason. These statements include, but are
not limited to, statements about the Company's expansion and business
strategies and anticipated growth opportunities and the amount of fundraising
necessary to achieve it. Such statements are not guarantees of future
performance and are subject to certain risks, uncertainties, and assumptions
that are difficult to predict. Accordingly, actual results could differ
materially and adversely from those expressed in any forward-looking
statements as a result of various factors. Important factors that may cause
such a difference include, but are not limited to, the demand for Industrial
Supply's products; the Company's ability to successfully identify, consummate
and integrate the acquisitions of other businesses; the Company's ability to
open warehouses in additional geographic regions; changes in business or other
market conditions; the difficulty of keeping expense growth at modest levels
while increasing revenues; the Company's ability to successfully defend
against current and new litigation matters as well as demands by investment
banks for defense, indemnity, and contribution; failure to obtain shareholder
approval of the proposed reincorporation; obtaining the expected benefits of
the proposed reincorporation; and other risks detailed from time to time in
the Company's Securities and Exchange Commission filings, including, but not
limited to, the Definitive Proxy Statement for the Special Meeting, the most
recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q
and 8-K.

SOURCE Signature Group Holdings, Inc.

Website: http://www.signaturegroupholdings.com
Contact: Signature Group Holdings, Inc., Jeff Crusinberry, SVP and Treasurer,
(805) 435-1255, invrel@signaturegroupholdings.com
 
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