Filed by Financial Industries Corporation
                               pursuant to Rule 425 under the Securities Act of
                                  1933 and deemed filed pursuant to Rule 14a-12
                                         of the Securities Exchange Act of 1934.
                                          Subject Company: Financial Industries
                                        Corporation. Commission File No. 0-4690


FOR IMMEDIATE RELEASE
January 18, 2001

FOR MORE INFORMATION CONTACT
Robert S. Cox
512-404-5128

AUSTIN, TEXAS -- Financial Industries  Corporation (FIC; NASDAQ symbol FNIN) and
InterContinental  Life Corporation (ILCO;  NASDAQ symbol ILCO) jointly announced
today that their  respective  Boards of  Directors  have  approved a  definitive
agreement  whereby FIC would acquire the remaining common shares  (approximately
52%) of  InterContinental  Life  Corporation  which FIC does not currently  own.
Under the terms of the agreement, a newly-established subsidiary of FIC ("Merger
Sub") will be merged with and into ILCO,  with ILCO  continuing as the surviving
entity in the merger transaction as a wholly-owned subsidiary of FIC.

Pursuant to the merger agreement, FIC will issue 1.1 shares of its Common Stock,
$0.20 par value, for each share of ILCO Common Stock,  $0.22 par value, not held
by FIC. The terms of the agreement and the exchange rate were  established  by a
Special  Committee  of the  Board  of  Directors  of each of FIC  and  ILCO  and
recommended to their respective Boards at yesterday's  meeting.  The transaction
is subject to various  conditions  precedent set forth in the merger  agreement,
including the approval of certain matters by the shareholders of FIC and ILCO.

FIC plans to file a  Registration  Statement on Form S-4 in connection  with the
issuance  of shares of its  common  stock in the merger and each of FIC and ILCO
expects  to  mail  a  Joint  Proxy   Statement/Prospectus  to  its  shareholders
containing  information  about  the  merger.  Investors  are  urged  to read the
Registration  Statement  and  Joint  Proxy  Statement/Prospectus  when  they are
available. The Registration Statement and Joint Proxy  Statement/Prospectus will
contain  important  information about FIC, ILCO, the merger and related matters.

                                      -1-



In   addition   to   the   Registration    Statement   and   the   Joint   Proxy
Statement/Prospectus,  FIC and ILCO file annual,  quarterly  and other  reports,
proxy  statements  and  other  information  with  the  Securities  and  Exchange
Commission  ("SEC").  Investors will be able to obtain copies of these documents
for free through the web site maintained by the SEC at http://www.sec.gov.  FIC,
ILCO and their respective  directors,  executive officers and certain members of
management  and  employees  may be  soliciting  proxies  from  FIC's and  ILCO's
shareholders  in favor of the merger and matters related to the merger that will
be set forth in the  Joint  Proxy  Statement/Prospectus.  A  description  of any
interests  that FIC's and ILCO's  directors and  executive  officers have in the
merger will be available in the Joint Proxy Statement/Prospectus.

This press release shall not  constitute an offer of any securities for sale nor
shall  there be any  sale of  securities  in any  state  in  which  such  offer,
solicitation or sale would be unlawful prior to  registration  or  qualification
under the securities laws of any such state.


                                      ####

                                      -2-