Atlas Financial Holdings, Inc. (NASDAQ: AFH) (“Atlas” or the “Company”) announced today that it entered into a definitive agreement to buy back and cancel of all of its outstanding preferred shares which are eligible for redemption. These preferred shares had a liquidation amount of $18.0 million and were purchased by Atlas for $16.2 million. Based on outstanding common shares as of the Company’s most recent 10Q, this discount is equal to $0.22 per common share. $7.5 million of the $16.2 million purchase price was paid upon the execution of the agreement, with the remaining amount to be paid over time as disclosed in the Company’s July 7, 2013 press release and related 8-K filed on July 11, 2013. The preferred shares being redeemed were issued by Atlas on December 31, 2010 in connection with the acquisition of American Country and American Service Insurance Companies. These preferred shares became eligible for redemption as of January 1, 2013. Had these preferred shares not been purchased for cancellation by Atlas, they would have been convertible after December 31, 2015 into 2,286,000 common shares at a strike price of $7.87. “This is a very positive transaction,” stated Scott D. Wollney, Atlas’ President & Chief Executive Officer. “It simplifies our capital structure by allowing us to eliminate potential future dilution to common equity through a transaction that is immediately accretive to the Company as a result of the discounted purchase price and meaningful elimination of preferred dividend payments.” About Atlas The primary business of Atlas is commercial automobile insurance in the United States, with a niche market orientation and focus on insurance for the “light” commercial automobile sector including taxi cabs, non-emergency paratransit, limousine/livery and business auto. The business of Atlas is carried on through its insurance subsidiaries American Country Insurance Company, American Service Insurance Company, Inc. and Gateway Insurance Company. Atlas' insurance subsidiaries have decades of experience with a commitment to always being an industry leader in these specialized areas of insurance.