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The First American Corporation Reports Operating Results For The First Quarter 2001
SANTA ANA, Calif., May 2 -- The First American Corporation(NYSE: FAF),

the nation's leading, diversified provider of business

information and related products and services, announced today operating

results for the first quarter ended March 31, 2001.

    Net income for the first quarter 2001 was $27.0 million, or 39 cents per

diluted share, which includes a $14.2 million pretax gain on the previously

announced sale of the company's subsidiary, Contour Software, Inc., and a

$3.6 million charge to earnings relating to the company's exit of the lender-

placed homeowner's insurance business, a part of the National Information

Group acquisition completed in May 1999.  These items totaled a net benefit of

$6.5 million on an after-tax basis, or 9 cents per diluted share.  The

resulting operational net income for the first quarter was $20.5 million, or

30 cents per diluted share, which compares with net income of $1.0 million, or

2 cents per diluted share, for the comparable quarter of 2000.  Revenues for

the first three months of 2001 totaled $781.0 million, an increase of

21 percent when compared with 2000 first quarter revenues of $646.2 million.

    "Fueled by lower interest rates, home sales and refinancing activity were

comparable to the record levels experienced in 1998," stated Parker S.

Kennedy, president of The First American Corporation.  "The company benefited

from the higher levels of lender-driven refinance activity, as evidenced by

the 434,700 new title orders opened during the first quarter of 2001, the

highest quarterly number of title orders opened in the company's history.  New

orders escalated 9 percent from January to February and an additional

21 percent from February to March.  This record-setting volume should provide

for strong second quarter results.  During this period of robust real estate

activity and high title-order counts, we were able to increase efficiencies

and keep expenses stable, underscoring our ability to leverage technology and

exercise solid expense controls."

    Kennedy continued: "During 2001, we will experience the bottom-line

benefits of our technology enhancements, market share expansion and strategic

acquisitions.  The successful sale of $210 million of our senior convertible

debentures enables us to fund our growth through careful, sound acquisitions.

We will continue to expand our diverse and profitable consumer information and

services segment, which provides a complete suite of information products for

the automotive, employment, insurance and investment industries."

    The company also announced that direct operation title-order counts are

now posted on the investor relations section of the company's Web site.  New

postings will be made approximately 20 working days after month-end and will

include open as well as closed title-order transactions.

The First American Corporation Summary of Earnings For the Three Months Ended March 31 2001 2000 Revenues $780,951,000 $646,174,000 Income before income taxes and minority interests $53,408,000 $3,885,000 Income taxes $19,500,000 $800,000 Minority interests $6,922,000 $2,083,000 Net income $26,986,000 $1,002,000 Net income per share: Basic $0.42 $0.02 Diluted $0.39 $0.02 Weighted average shares outstanding: Basic 64,165,000 64,138,000 Diluted 68,797,000 65,322,000 The First American Corporation Summary Balance Sheet Information March 31 2001 2000 Total assets $2,234,619,000 $2,060,699,000 Total equity $910,694,000 $793,605,000 Book value per share $14.04 $12.53 Selected Financial Data (Unaudited) For the Three Months Ended March 31 2001 2000 RESULTS OF OPERATIONS Revenues Operating revenues $750,184,000 $635,865,000 Investment and other income 30,767,000 10,309,000 780,951,000 646,174,000 Expenses Salaries and other personnel costs 274,819,000 250,204,000 Premiums retained by agents 189,407,000 167,122,000 Other operating expenses 191,088,000 166,360,000 Provision for title losses and other claims 36,490,000 30,123,000 Depreciation and amortization 24,433,000 17,416,000 Premium taxes 5,008,000 5,288,000 Interest 6,298,000 5,776,000 727,543,000 642,289,000 Income before income taxes and minority interests $53,408,000 $3,885,000 OPERATING REVENUES Title Insurance: Direct operations $289,271,000 $235,946,000 Agency operations 234,254,000 210,600,000 523,525,000 446,546,000 Real Estate Information 162,233,000 128,757,000 Consumer Information 64,426,000 60,562,000 Total operating revenues $750,184,000 $635,865,000 INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS Title Insurance $19,677,000 $6,252,000 Real Estate Information 41,724,000 2,864,000 Consumer Information 3,977,000 9,594,000 Total before corporate expenses and minority interests 65,378,000 18,710,000 Corporate expenses 11,970,000 14,825,000 Income before income taxes and minority interests $53,408,000 $3,885,000 TITLE INSURANCE ORDER COUNTS FROM DIRECT OPERATIONS Title orders opened: January 127,500 87,400 February 139,100 100,300 March 168,100 123,500 Title orders closed: January 72,900 64,500 February 84,000 71,000 March 113,200 94,800

The First American Corporation, based in Santa Ana, Calif., is the nation's

leading, diversified provider of business information and related products and

 services.  The corporation's three primary business segments

include:  title information and services; real estate information and