EXHIBIT 99


                      HALLMARK FINANCIAL SERVICES, INC.
           ANNOUNCES JUNE 27, 2003 RECORD DATE FOR RIGHTS OFFERING

 FORT WORTH,  Texas, (June  16, 2003)  -  Hallmark Financial  Services,  Inc.
 (Amex:HAF.EC), announced  today  that the  record  date for  its  previously
 announced rights offering has been set for the close of business on June 27,
 2003.  Upon  the effectiveness  of the registration  statement, the  Company
 will distribute to its shareholders of record as of the record date  a fixed
 amount of  non-transferable rights  to subscribe  for shares  of its  common
 stock. It is anticipated that each right will entitle the holder to purchase
 one share  of the  Company's common  stock  at a  subscription price  to  be
 determined.

 Hallmark anticipates that the rights offering will begin  promptly following
 the effectiveness of  the registration statement  filed with the  Securities
 and Exchange Commission.  The  proceeds  of the rights offering will be used
 to repay an  $8.6 million loan, plus accrued interest  on the loan, made  to
 Hallmark in 2002 by Newcastle  Partners, L.P., with any  additional proceeds
 used for working capital purposes.  The  proceeds of the loan from Newcastle
 Partners, L.P., were utilized to finance  the purchase of a  note receivable
 from  a major  bank and the acquisition of the  Commercial Lines Group  from
 Millers Insurance Company.  A portion  of the note receivable purchased from
 the  bank was later exchanged  for one-hundred percent  of the capital stock
 of Phoenix  Indemnity  Insurance  Company.  Newcastle  Partners,  L.P. is an
 affiliate of Mark E. Schwarz, the Chairman and CEO of Hallmark.

 Neither Hallmark, its board of directors, nor any committee of the  board of
 directors is  making any  recommendation to  shareholders as  to whether  to
 exercise their subscription rights. Further information regarding the rights
 offering including pricing,  record date, and  process will be  communicated
 over the next  several weeks.  When available, a  written prospectus may  be
 obtained by contacting Hallmark  Financial Services, Inc., 777  Main Street,
 Suite 1000, Fort Worth, Texas 76102, Attention: Investor Relations.

 A registration statement relating  to these securities  has been filed  with
 the Securities and  Exchange Commission  but has not  yet become  effective.
 These securities may not be sold and offers may not be accepted prior to the
 time the registration statement becomes effective.  The rights offering will
 only be made by means of prospectus. This press release shall not constitute
 an offer to sell  or the solicitation of  an offer to buy  these securities,
 and there shall not be  any sale of these  securities in any state  in which
 such offer, solicitation, or sale would be unlawful prior to registration or
 qualification under securities laws of any such state.

 Hallmark Financial Services, Inc. engages primarily in the sale  of property
 and casualty insurance products.  The Company's business involves marketing,
 underwriting and  premium  financing  of  non-standard  personal  automobile
 insurance primarily in Texas,  Arizona and New Mexico,  commercial insurance
 in Texas,  New Mexico,  Idaho, Oregon  and  Washington, third  party  claims
 administration,  and  other  insurance  related  services.  The  Company  is
 headquartered in Fort  Worth, Texas and  its common stock  is listed on  the
 American Stock Exchange under the symbol "HAF.EC".

 Forward-looking statements in this  Release are made  pursuant to the  "safe
 harbor" provisions  of  the  Private  Securities  Litigation  Act  of  1995.
 Investors are cautioned  that actual results  may differ substantially  from
 such forward-looking  statements.  Forward-looking statements involve  risks
 and uncertainties including, but not limited to, continued acceptance of the
 Company's products  and services  in the  marketplace, competitive  factors,
 interest rate  trends,  the  availability of  financing,  underwriting  loss
 experience and  other risks  detailed from  time to  time  in the  Company's
 periodic report filings with the Securities and Exchange Commission.

                   For further information, please contact:
             Timothy A. Bienek, President and COO at 817.348.1600
                             www.hallmarkgrp.com