Mercury General Corporation Increases Dividend 11.6%

Mercury General Corporation (NYSE: MCY) announced that its Board of Directors, on February 3, 2006, declared a first quarter dividend of $0.48, an annual rate of $1.92 representing an 11.6% increase over the rate paid in 2005. The dividend will be paid on March 30, 2006 to shareholders of record on March 15, 2006.

Since dividends were instituted in the first quarter of 1986, Mercury General's dividend has increased at least once each year with the overall compound rate of increase over twenty years averaging approximately 20%.

As previously announced, the Company will host an investor conference call and webcast on February 13, 2006 to review the Company's results of operations for the fourth quarter and twelve-month period ended December 31, 2005. All interested investors will be able to access the conference call at (877) 807-1888 (USA), (706) 679-3827 (International) or the webcast by visiting http://www.mercuryinsurance.com/. A replay of the call will be available beginning at 1:30 P.M. Pacific Time and running through February 20, 2006. The replay telephone numbers are (800) 642-1687 (USA) or (706) 645-9291 (International). The conference ID# is 4437368. The replay will also be available on our website shortly following the call.

Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states. For more information, visit our website at http://www.mercuryinsurance.com/.

SOURCE: Mercury General Corporation

CONTACT: Theodore Stalick, VP/CFO of Mercury General Corporation,
+1-323-937-1060

Web site: http://www.mercuryinsurance.com/