The National Security Group, Inc.
661 East Davis Street
Post Office Box 703
Elba, Alabama 36323 EXHIBIT 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

For Additional Information: Contact M.L. Murdock – Chief Operational Officer @ (334) 897-2273 Ext. 238.

      THE NATIONAL SECURITY GROUP, INC.
DECLARES CASH DIVIDEND

ELBA, ALABAMA (OCTOBER 16, 2003)…THE BOARD OF DIRECTORS OF THE NATIONAL SECURITY GROUP, INC., DECLARED A QUARTERLY DIVIDEND OF $.21 PER SHARE AT ITS MEETING ON OCTOBER 16, 2003. THIS REPRESENTS AN ANNUAL INDICATED DIVIDEND RATE OF $.84 PER SHARE. THIS CASH DIVIDEND IS PAYABLE ON NOVEMBER 28, 2003 TO SHAREHOLDERS OF RECORD NOVEMBER 3, 2003. WITH ITS HOME OFFICE IN ELBA, ALABAMA, THE NATIONAL SECURITY GROUP, INC., IS AN INSURANCE HOLDING COMPANY. ITS SHARES ARE TRADED ON THE NASDAQ NATIONAL MARKET UNDER THE SYMBOL NSEC.