Donegal Financial Services Corporation and Union National Financial Corporation Amend Pricing of Merger

Donald H. Nikolaus, President of Donegal Financial Services Corporation, and Mark D. Gainer, Chairman, President and Chief Executive Officer of Union National Financial Corporation UNNF, today jointly announced the execution of an amendment to the Agreement and Plan of Merger dated April 19, 2010, as amended and restated May 20, 2010, pursuant to which UNNF and DFSC would merge. The amendment increases the cash portion of the merger consideration payable to UNNF's shareholders upon the completion of the merger. UNNF and DFSC did not amend the merger agreement in any other respect. As a result of the amendment, upon the completion of the merger, each share of UNNF common stock will become the right to receive 0.2134 share of Class A common stock of Donegal Group Inc. DGICA and that amount of cash as equals $8.25 less the value of 0.2134 share of DGI Class A common stock, based on the average closing price of DGI Class A common stock for the five trading days immediately preceding the effective date of the merger, but in no event less than $5.05 per share in cash nor more than $5.90 per share in cash.