LANCASTER and MARIETTA, Penn., June 16, 2010 (GLOBE NEWSWIRE) -- Union National Financial Corporation ("UNNF") (OTCBB:UNNF), Donegal Financial Services Corporation ("DFSC"), an affiliate of Donegal Group Inc. (Nasdaq:DGICA) (Nasdaq:DGICB) and Donegal Mutual Insurance Company, today jointly reported they have become aware of the filing of a complaint on June 14, 2010 in the Court of Common Pleas of Lancaster County, Pennsylvania against UNNF, each of the directors of UNNF, DFSC and certain affiliated entities of DFSC (collectively, the "Donegal Parties").
The complaint purports to be a class action filed on behalf of the holders of UNNF common stock arising from certain alleged actions by UNNF and its board of directors in connection with the previously announced proposed merger of UNNF with and into DFSC.
UNNF and the Donegal Parties believe the factual allegations in the complaint are without merit and intend to defend vigorously against the allegations in the complaint.Donegal Group Inc. and Union National Financial Corporation will file a proxy statement/prospectus and other relevant documents with the SEC in connection with the mergers. SHAREHOLDERS OF UNION NATIONAL FINANCIAL CORPORATION ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The proxy statement/prospectus and other relevant materials, when they become available, and any other documents filed by Donegal Group Inc. and Union National Financial Corporation with the SEC, may be obtained free of charge at the SEC's web site at www.sec.gov . In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Donegal Group Inc. by contacting Jeffrey D. Miller, Senior Vice President & Chief Financial Officer, Donegal Group Inc., 1195 River Road, Marietta, Pennsylvania, 17547, telephone: (717) 426-1931, and by Union National Financial Corporation by contacting Mark D. Gainer, President and Chief Executive Officer, Union National Financial Corporation, 570 Lausch Lane, Suite 300, Lancaster, Pennsylvania 17601, telephone: (717) 519-8630. Union National Financial Corporation and its directors and executive officers may be deemed to be participants in the solicitation of proxies from its shareholders in connection with the proposed merger. Information concerning such participants' ownership of Union National Financial Corporation stock will be set forth in the proxy statement/prospectus relating to the merger when it becomes available. This communication does not constitute an offer of any securities for sale.