IRVING, Texas, Jan. 16 /PRNewswire-FirstCall/ -- EFJ, Inc. (Nasdaq: EFJI) received a letter from the Listing Qualifications Department of the Nasdaq Stock Market ('Nasdaq') on January 14, 2008 stating that between the period of December 31, 2006 and October 26, 2007 , the Company failed to comply with the audit committee requirements set forth in Nasdaq Marketplace Rule 4350(d)(2) for continued listing. The Company received the letter because the Company entered into a contract with DRS Technical Services, Inc. [formerly known as Technical and Management Services Corporation ('TAMSCO')] in June of 2006, resulting in revenue to the Company in excess of 5% of the Company's 2006 consolidated revenues. Mark Newman, a director of the Company, has served and continues to serve as an executive officer of the parent Company of TAMSCO. Accordingly, Newman was precluded from being considered an 'independent director' as defined under Nasdaq's Marketplace Rule 4200(15)(d). Newman had previously stepped down from the Company's audit and compensation committees on October 26, 2007 , and accordingly, as of October 27, 2007 , the Company was back in compliance with Nasdaq's Marketplace Rule 4350(d)(2).

Nasdaq has determined that the Company has regained compliance with the Rule, and the matter is now closed. Newman continues to serve on the Board of Directors of the Company.

About EFJ, Inc.

Headquartered in Irving, Texas, EFJ, Inc. focuses on innovating, developing and marketing the highest quality secure communications solutions to organizations whose mission is to protect and save lives. The Company's customers include first responders in public safety and public service, the federal government, and industrial organizations. The Company's products are marketed under the EFJohnson, 3e Technologies International, and Transcrypt International names. For more information, visit http://www.efji.com.

SOURCE EFJ, Inc.