content: [GRAPHIC OMITTED][GRAPHIC OMITTED]
                      American Physicians Service Group, Inc.
                        Press Release for Immediate Release
  
  
                       AMERICAN PHYSICIANS SERVICE GROUP, INC.
                     REPORTS 92% EPS INCREASE IN SECOND QUARTER
  
       AUSTIN,  TEXAS,  August 8, 2005 - American  Physicians  Service Group, Inc.
  ("APS")  (NASDAQ:  AMPH) today announced  results for the quarter and six months
  ended June 30, 2005.  For the three months  ended June 30, 2005,  revenues  were
  $7,033,000  compared to $7,295,000 for the three months ended June 30, 2004. Net
  earnings  were  $1,367,000  or $.48 per share,  compared to $689,000 or $.25 per
  diluted share for the three months ended June 30, 2004. For the six months ended
  June 30, 2005,  revenues were  $13,695,000  compared to $14,585,000  for the six
  months ended June 30, 2004.  Net earnings  were  $2,220,000  or $.77 per diluted
  share, compared to $1,383,000 or $.49 per diluted share for the six months ended
  June 30, 2004.
  
       Ken Shifrin,  APS Chairman of the Board stated, "We are pleased that, taken
  together,  operating income at our two core business segments exceeded operating
  income in the comparable  quarter a year-ago.  The increase was approximately 7%
  on  approximately  9% lower  revenues.  On an  individual  basis,  our insurance
  services segment continued its positive trend, while interest rate and inflation
  concerns kept our financial services segment underperforming last year."
  
       Mr. Shifrin  continued,  "As in the first quarter,  we were able to realize
  gains  this  quarter on equity  investments,  recognizing  $1,289,000  in pretax
  income. Partially offsetting the gain were expenses related to the sale that are
  
  <PAGE>
  
  included in general and administrative expenses.  Proceeds of the sale have been
  invested  primarily in government  securities,  with a portion set aside to fund
  our recently announced dividend.
  
       Mr. Shifrin concluded,  "Along with operating performance we remain focused
  on value and  liquidity.  Book value per share as of the June 30,  2005  balance
  sheet increased to $9.62 from $8.23 per share at June 30, 2004.  Contributing to
  the book value improvement has been our management of shares outstanding. At our
  Annual  Meeting,  shareholders  approved  new  equity  compensation  plans  that
  continue to align  managements' and  shareholders'  interests,  while minimizing
  share  dilution.  We also remain active with our share  repurchase plan and have
  now invested  approximately  $1.4 million of the $2.0 million  authorized by our
  board of directors.  With a current ratio exceeding 5:1, our liquidity has never
  been better and we remain  alert to  opportunities  that have the  potential  to
  increase shareholder value."
  
  ABOUT THE COMPANY
  
       APS is a management  and  financial  services firm with  subsidiaries  that
  provide:  medical malpractice  insurance services for doctors; and brokerage and
  investment services to institutions and high net worth individuals.  The Company
  is headquartered in Austin,  Texas and maintains  offices in Dallas and Houston.
  
  FORWARD-LOOKING STATEMENTS
  
       This  press  release  includes  forward-looking  statements  related to the
  Company that involve risks and uncertainties  that could cause actual results to
  differ materially.  These forward-looking statements are made in reliance on the
  "safe harbor"  provisions  of the Private  Securities  Litigation  Reform Act of
  1995. For further  information about the factors that could affect the Company's
  future results,  please see the Company's recent filings with the Securities and
  Exchange  Commission.  Prospective  investors are cautioned that forward-looking
  statements are not guarantees of future  performance.  Actual results may differ
  materially  from  management  expectations.  Copies of the filings are available
  upon request from the Company's investor relations department.
  
  
  <PAGE>
  
  
                       AMERICAN PHYSICIANS SERVICE GROUP, INC.
                               SELECTED FINANCIAL DATA
                        (In thousands, except per share data)
  
  
  <TABLE>
  <CAPTION>
  
                                                           Three Months Ended                Six Months Ended
                                                                June 30,                         June  30
                                                          --------------------             ---------------------
                                                          2005            2004             2005             2004
                                                          ----            ----             ----             ----
  
  Revenues:
  
  <S>                                                    <C>             <C>              <C>              <C>
  Financial services                                     $3,698          $4,227           $6,965           $8,059
  Insurance services                                      3,335           3,068            6,730            6,526
                                                         ------           -----           ------           ------
           Total revenues                                 7,033           7,295           13,695           14,585
  
  Expenses:
  
  Financial services                                      3,270           3,660            6,220            6,901
  Insurance services                                      2,422           2,380            4,925            5,002
  General and administrative                                722             555            1,389            1,068
  Gain on sale of assets                                    (49)            (44)             (84)              56
                                                         ------          ------           ------           ------
  
           Total expenses                                 6,365           6,551           12,450           12,915
                                                         ------          ------           ------           ------
  Operating income                                          668             744            1,245            1,670
  Sale of investments and other                           1,289             230            1,880              320
                                                         ------          ------           ------           ------
  
  Income from operations before interest,
  income taxes and minority interest                      1,957             974            3,125            1,990
  
  Interest and other income                                 154              96              327              171
  
  Income tax expense                                        742             381            1,219              778
  Minority interest                                           2              --               13               --
                                                         ------          ------           ------            -----
  
  Net income
  Diluted income per share:                              $1,367          $  689           $2,220           $1,383
                                                         ======          ======           ======           ======
  
  
           Net income                                     $0.48           $0.25            $0.77            $0.49
                                                          =====           =====            =====            =====
  
  Weighted average shares outstanding (diluted)           2,876           2,791            2,892            2,802
                                                          =====           =====            =====            =====
  </TABLE>
  
  
  
  <PAGE>
  
  
                       AMERICAN PHYSICIANS SERVICE GROUP, INC.
                         SELECTED FINANCIAL DATA, continued
  
  (In Thousands)
                                                                June 30
                                                      ---------------------------
                                                        2005              2004
                                                        ----              ----
  
  ASSETS
  
  Current assets                                       $15,125            11,855
  
  Notes receivable, less current portion                   338               318
  Property and equipment                                   686               554
  Investment in available for sale equity fixed
    income securities-non-current                       11,201            11,065
  Goodwill                                               1,247             1,247
  Other assets                                             267               392
                                                       --------          ---------
           Total Assets                                $28,864           $25,431
                                                       ========          =======
  
  
  LIABILITIES AND SHAREHOLDERS' EQUITY
  
  Current liabilities                                    2,739            3,487
  
  Other liabilities                                        344             1,042
                                                       --------         ---------
           Total liabilities                             3,083             4,529
  
  Minority interests                                        14                --
  
  Shareholders' Equity:
  
  Common stock                                             268               254
  Additional paid-in capital                             7,695             7,192
  Retained earnings                                     16,168            13,756
  Accumulated other comprehensive income
    (loss), net of taxes                                 1,636              (300)
                                                       --------           -------
  
           Total shareholders' equity                   25,767            20,902
                                                       --------           -------
  
  Total Liabilities and Shareholders' Equity           $28,864           $25,431
                                                       =======           =======
  
  For further information, visit  APS's  Website at www.amph.com or contact:
  
  Mr. Kenneth Shifrin, Chairman of the Board (or)
  Mr. W. H. Hayes, Sr. Vice President - Finance
  American Physicians Service Group, Inc.
  1301 Capital of Texas Highway, C-300
  Austin, Texas  78746
  (512) 328-0888
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "pressrel.txt", "description": "2ND QUARTER 2005 EARNINGS RELEASE", "secsgml_size_bytes": 10426}]
metadata_filer: {"company-data": {"conformed-name": "AMERICAN PHYSICIANS SERVICE GROUP INC", "cik": "0000724024", "assigned-sic": "8741", "irs-number": "751458323", "state-of-incorporation": "TX", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-31434", "film-number": "051006177"}, "business-address": {"street1": "1301 CAPITAL OF TEXAS HWY", "street2": "C-300", "city": "AUSTIN", "state": "TX", "zip": "78746", "phone": "5123280888"}, "mail-address": {"street1": "1301 CAPITAL OF TEXAS HIGHWAY", "city": "AUTIN", "state": "TX", "zip": "78746"}}
text: [GRAPHIC OMITTED][GRAPHIC OMITTED]
                      American Physicians Service Group, Inc.
                        Press Release for Immediate Release
  
                       AMERICAN PHYSICIANS SERVICE GROUP, INC.
                     REPORTS 92% EPS INCREASE IN SECOND QUARTER
  
       AUSTIN,  TEXAS,  August 8, 2005 - American  Physicians  Service Group, Inc.
  ("APS")  (NASDAQ:  AMPH) today announced  results for the quarter and six months
  ended June 30, 2005.  For the three months  ended June 30, 2005,  revenues  were
  $7,033,000  compared to $7,295,000 for the three months ended June 30, 2004. Net
  earnings  were  $1,367,000  or $.48 per share,  compared to $689,000 or $.25 per
  diluted share for the three months ended June 30, 2004. For the six months ended
  June 30, 2005,  revenues were  $13,695,000  compared to $14,585,000  for the six
  months ended June 30, 2004.  Net earnings  were  $2,220,000  or $.77 per diluted
  share, compared to $1,383,000 or $.49 per diluted share for the six months ended
  June 30, 2004.
  
       Ken Shifrin,  APS Chairman of the Board stated, "We are pleased that, taken
  together,  operating income at our two core business segments exceeded operating
  income in the comparable  quarter a year-ago.  The increase was approximately 7%
  on  approximately  9% lower  revenues.  On an  individual  basis,  our insurance
  services segment continued its positive trend, while interest rate and inflation
  concerns kept our financial services segment underperforming last year."
  
       Mr. Shifrin  continued,  "As in the first quarter,  we were able to realize
  gains  this  quarter on equity  investments,  recognizing  $1,289,000  in pretax
  income. Partially offsetting the gain were expenses related to the sale that are
  included in general and administrative expenses.  Proceeds of the sale have been
  invested  primarily in government  securities,  with a portion set aside to fund
  our recently announced dividend.
  
       Mr. Shifrin concluded,  "Along with operating performance we remain focused
  on value and  liquidity.  Book value per share as of the June 30,  2005  balance
  sheet increased to $9.62 from $8.23 per share at June 30, 2004.  Contributing to
  the book value improvement has been our management of shares outstanding. At our
  Annual  Meeting,  shareholders  approved  new  equity  compensation  plans  that
  continue to align  managements' and  shareholders'  interests,  while minimizing
  share  dilution.  We also remain active with our share  repurchase plan and have
  now invested  approximately  $1.4 million of the $2.0 million  authorized by our
  board of directors.  With a current ratio exceeding 5:1, our liquidity has never
  been better and we remain  alert to  opportunities  that have the  potential  to
  increase shareholder value."
  
  ABOUT THE COMPANY
  
       APS is a management  and  financial  services firm with  subsidiaries  that
  provide:  medical malpractice  insurance services for doctors; and brokerage and
  investment services to institutions and high net worth individuals.  The Company
  is headquartered in Austin,  Texas and maintains  offices in Dallas and Houston.
  
  FORWARD-LOOKING STATEMENTS
  
       This  press  release  includes  forward-looking  statements  related to the
  Company that involve risks and uncertainties  that could cause actual results to
  differ materially.  These forward-looking statements are made in reliance on the
  "safe harbor"  provisions  of the Private  Securities  Litigation  Reform Act of
  1995. For further  information about the factors that could affect the Company's
  future results,  please see the Company's recent filings with the Securities and
  Exchange  Commission.  Prospective  investors are cautioned that forward-looking
  statements are not guarantees of future  performance.  Actual results may differ
  materially  from  management  expectations.  Copies of the filings are available
  upon request from the Company's investor relations department.
  AMERICAN PHYSICIANS SERVICE GROUP, INC.
                               SELECTED FINANCIAL DATA
                        (In thousands, except per share data)
  Three Months Ended                Six Months Ended
                                                                June 30,                         June  30
                                                          --------------------             ---------------------
                                                          2005            2004             2005             2004
                                                          ----            ----             ----             ----
  
  Revenues:
  Financial services                                     $3,698          $4,227           $6,965           $8,059
  Insurance services                                      3,335           3,068            6,730            6,526
                                                         ------           -----           ------           ------
           Total revenues                                 7,033           7,295           13,695           14,585
  
  Expenses:
  
  Financial services                                      3,270           3,660            6,220            6,901
  Insurance services                                      2,422           2,380            4,925            5,002
  General and administrative                                722             555            1,389            1,068
  Gain on sale of assets                                    (49)            (44)             (84)              56
                                                         ------          ------           ------           ------
  
           Total expenses                                 6,365           6,551           12,450           12,915
                                                         ------          ------           ------           ------
  Operating income                                          668             744            1,245            1,670
  Sale of investments and other                           1,289             230            1,880              320
                                                         ------          ------           ------           ------
  
  Income from operations before interest,
  income taxes and minority interest                      1,957             974            3,125            1,990
  
  Interest and other income                                 154              96              327              171
  
  Income tax expense                                        742             381            1,219              778
  Minority interest                                           2              --               13               --
                                                         ------          ------           ------            -----
  
  Net income
  Diluted income per share:                              $1,367          $  689           $2,220           $1,383
                                                         ======          ======           ======           ======
  
           Net income                                     $0.48           $0.25            $0.77            $0.49
                                                          =====           =====            =====            =====
  
  Weighted average shares outstanding (diluted)           2,876           2,791            2,892            2,802
                                                          =====           =====            =====            =====
  AMERICAN PHYSICIANS SERVICE GROUP, INC.
                         SELECTED FINANCIAL DATA, continued
  
  (In Thousands)
                                                                June 30
                                                      ---------------------------
                                                        2005              2004
                                                        ----              ----
  
  ASSETS
  
  Current assets                                       $15,125            11,855
  
  Notes receivable, less current portion                   338               318
  Property and equipment                                   686               554
  Investment in available for sale equity fixed
    income securities-non-current                       11,201            11,065
  Goodwill                                               1,247             1,247
  Other assets                                             267               392
                                                       --------          ---------
           Total Assets                                $28,864           $25,431
                                                       ========          =======
  
  LIABILITIES AND SHAREHOLDERS' EQUITY
  
  Current liabilities                                    2,739            3,487
  
  Other liabilities                                        344             1,042
                                                       --------         ---------
           Total liabilities                             3,083             4,529
  
  Minority interests                                        14                --
  
  Shareholders' Equity:
  
  Common stock                                             268               254
  Additional paid-in capital                             7,695             7,192
  Retained earnings                                     16,168            13,756
  Accumulated other comprehensive income
    (loss), net of taxes                                 1,636              (300)
                                                       --------           -------
  
           Total shareholders' equity                   25,767            20,902
                                                       --------           -------
  
  Total Liabilities and Shareholders' Equity           $28,864           $25,431
                                                       =======           =======
  
  For further information, visit  APS's  Website at www.amph.com or contact:
  
  Mr. Kenneth Shifrin, Chairman of the Board (or)
  Mr. W. H. Hayes, Sr. Vice President - Finance
  American Physicians Service Group, Inc.
  1301 Capital of Texas Highway, C-300
  Austin, Texas  78746
  (512) 328-0888