HOUSTON, July 27, 2007 - Stewart Information Services Corporation (NYSE-STC) today reported the results of its operations for the second quarter and six months ended June 30, 2007. (Dollar amounts in the table below are in millions, except per share figures.)

		Second Quarter
		2007		2006
Total revenues	$	573.4	$	644.7
Pretax earnings before minority interests		19.2		29.6
Net earnings		10.1		15.7
Net earnings per diluted share		0.55		0.86

		Six Months
		2007		2006
Total revenues	$	1,105.1	$	1,184.2
Pretax earnings before minority interests		14.6		37.9
Net earnings		5.4		18.4
Net earnings per diluted share		0.29		1.00

▪ Revenues decreased 11.1 percent to $573.4 million in the second quarter of 2007 compared with $644.7 million for the second quarter of 2006. The Company reported earnings before taxes and minority interests of $19.2 million for the second quarter of 2007 compared with earnings of $29.6 million for the same period in 2006.

▪ Revenues decreased 6.7 percent to $1.1 billion in the first six months of 2007 compared with $1.2 billion in the first six months of 2006. Earnings before taxes and minority interests for the first six months of 2007 were $14.6 million compared with $37.9 million for the same period in 2006.

▪ The revenue decline in the second quarter of 2007 from the same period in 2006 was primarily due to a decrease in the number of home sales, a decline in home prices, a drop in new home construction and reduced financing activity related in part to the subprime lending market. This revenue decline was partially offset by an increase in commercial and international transactions. In addition, revenues increased by $6.2 million and pretax earnings increased by $0.8 million for the quarter due to acquisitions made since the same period in the prior year.

▪“We have responded aggressively to reduce our title office staff and expenses in response to real estate market declines while maintaining staffing to provide superior customer service and gain market share,” said Stewart Morris, Jr., president and co-chief executive officer. The current conversion and roll-out phases of the Company’s web-based technology will continue to require the current level of investment in technology staff. Excluding the effect of new offices and divestitures, the Company reduced its company-wide employee headcount by approximately 540, or 5.5 percent, from December 31, 2006 to June 30, 2007 (of which a reduction of approximately 240 occurred in the second quarter). Since December 31, 2005, the employee headcount reduction has been approximately 1,280, or 12.7 percent.

▪ Employee costs were also lower in the second quarter and year-to-date periods of 2007 due to the decline to a more normal level in both the number and dollar amounts of major medical claims. Partially offsetting the decreases in headcounts and medical claims, employee costs in 2007 increased due to salary increases in response to highly competitive marketplaces in which the Company operates. In addition, employee costs increased in the areas of technology development and commercial business. Other operating expenses did not decline at the same rate as revenues primarily due to the fixed nature of most of the Company’s other operating costs.

The Company’s development efforts for AIM+, a title production and escrow technology, have reached the Beta phase for initial deployment. “This is a major move to a web-based production platform that began three years ago," said Stewart Morris, Jr. “The migration of installations to our state-of-the-art data center remains on target. This will allow us to shut down multiple older data centers by the end of the third quarter, yielding more savings due to centralization."

The Company began a shared-services initiative this quarter that is designed to produce significant savings and efficiencies within the next 24 months. "We are focusing on back-office services, including accounting, employee services, finance, marketing and technology,” said Malcolm S. Morris, chairman and co-chief executive officer. “We believe this initiative will produce efficiencies that will enhance service to our associates and empower them to focus on customers to generate revenues.”

Title orders declined in the second quarter of 2007 by 11.1 percent from the same period a year ago. Orders were 13.6 percent lower in June 2007 than in June 2006. “The continued softening of the housing market and the major decline of the subprime lending market were the primary reasons for declines in title orders,” said Malcolm S. Morris.

Stewart Information Services Corporation is a customer-driven, technology-enabled, strategically competitive, real estate information and transaction management company. Stewart provides title insurance and related information services required for settlement by the real estate and mortgage industries through more than 9,500 policy-issuing offices and agencies in the United States and international markets. Stewart also provides post-closing lender services, automated county clerk land records, property ownership mapping, geographic information systems, property information reports, flood certificates, document preparation, background checks and expertise in tax-deferred exchanges. More information can be found at www.stewart.com.

This press release may contain forward-looking statements, which include all statements other than statements of historical facts. Forward-looking statements are not guarantees of performance and no assurance can be given that Stewart’s expectations will be achieved. In particular, historical order counts do not necessarily indicate future revenues because Stewart cannot predict the number of orders that will result in closings.

Three months ended

Six months ended

June 30

2007

2006

2007

2006

Revenues

Title insurance:

Direct operations

270,428

275,613

500,042

503,431

Agency operations

276,434

340,189

548,688

621,843

Real estate information

16,497

19,735

33,030

39,754

Investment income

9,168

8,396

18,219

16,933

Investment and other gains - net

902

796

5,124

2,191

573,429

644,729

1,105,103

1,184,152

Expenses

Amounts retained by agencies

222,752

274,935

445,142

501,811

Employee costs

179,096

183,669

355,888

362,771

Other operating expenses

105,241

107,441

198,884

197,245

Title losses and related claims

35,117

39,217

66,976

64,475

Depreciation and amortization

10,149

8,426

20,034

17,114

Interest

1,874

1,417

3,542

2,847

554,229

615,105

1,090,466

1,146,263

Earnings before taxes and minority interests

19,200

29,624

14,637

37,889

Income taxes

5,541

8,739

2,921

10,489

Minority interests

3,535

5,175

6,354

9,043

Net earnings

10,124

15,710

5,362

18,357

Average number of diluted shares (000)

18,351

18,310

18,340

18,306

Earnings per diluted share

0.55

0.86

0.29

1.00

Segment information:

Title revenues

556,932

624,994

1,072,073

1,144,398

Title pretax earnings before minority interests

19,862

29,645

11,807

36,409

REI revenues

16,497

19,735

33,030

39,754

REI pretax (loss) earnings before minority interests

(662

)

(21

)

2,830

1,480

Selected financial information:

Cash provided by operations

34,548

27,637

19,432

14,413

Title loss payments - net of recoveries

19,798

27,666

45,251

55,156

Changes in other comprehensive

earnings - net of taxes

(286

)

(2,339

)

547

(5,340

)

Number of title orders opened (000):

April

59.4

62.5

May

61.4

71.5

June

58.9

68.1

Quarter

179.7

202.1

Number of title orders closed (000):

Quarter

125.1

147.0

	June 30 2007		Dec 31 2006

Stockholders’ equity		810,076		802,262
Number of shares outstanding (000)		18,280		18,231
Book value per share		44.31		44.00

	June 30			December 31
	2007			2006
Assets
Cash and cash equivalents		126,170			136,137
Short-term investments		133,270			161,711
Investments - statutory reserve funds		520,531			490,540
Investments - other		61,503			78,249

Receivables - premiums from agencies		53,818			58,023
Receivables - other		62,911			61,556
Less allowance for uncollectible amounts		(8,980	)		(9,112	)
Property and equipment		103,399			99,325
Title plants		75,581			70,324

Goodwill		207,035			204,302
Intangible assets		19,627			15,444
Other assets		105,378			91,708

		1,460,243			1,458,207

Liabilities
Notes payable	112,686	109,549
Accounts payable and accrued liabilities	104,666	130,589
Estimated title losses	406,121	384,396
Deferred income taxes	9,063	14,139
Minority interests	17,631	17,272
	650,167	655,945

Stockholders' equity
Common and Class B Common Stock and additional paid-in capital	150,127		148,517
Retained earnings	655,438		649,598
Accumulated other comprehensive earnings	8,608		8,061
Treasury stock	(4,097	)	(3,914	)

Total stockholders' equity	810,076		802,262

	1,460,243		1,458,207

Contact:	Ted C. Jones
	Director - Investor Relations
	(713) 625-8014