UPDATE: Large LandAmerica (LFG) Holder Viking Global Wants Company Sold

In a 13D filing on LandAmerica Financial Group, Inc. (NYSE: LFG), 7.9% holder Viking Global delivered a letter to the company stating that, while it has generally been pleased with management's execution over the last two years, it believes that the next appropriate step in value creation for shareholders is a sale of the company.

The firm believes that an acquisition of the company by one of its larger competitors would result in synergies approximating $6.00 to $7.00 per share and would afford shareholders a substantial return in the form of a control premium at the time of the sale.

The firm requested that the Board of Directors engage an investment bank to solicit interest from potential acquirers.

A Copy of the Letter:

To the Board of Directors:

Viking owns 1,353,200 million shares, or 7.9% of the outstanding shares of LandAmerica Financial Group ("LandAmerica" or the "Company") as of May 31,2007. Viking has held shares in LandAmerica over the last two years, and we have generally been pleased with management's execution during this time period.Management has substantially improved shareholder returns through there domestication of LandAmerica's title insurance subsidiaries to Nebraska and through the initiation of Project Fusion. The redomestication of capital will shrink the outstanding equity base of the Company, allowing it to improve its currently depressed return on equity. Moreover, we are confident that a successful implementation of Project Fusion will result in a narrowing of the gap between operating margins of the Company and the operating margins of its larger competitors.

While we applaud management for the programs outlined above, at this time we believe the company should consider other options as well. Based on previous large-scale acquisitions in the title insurance industry, we believe that an acquisition of LandAmerica by one of its larger competitors would resul tin synergies approximating $6.00 to $7.00 per LandAmerica share, thereby nearly doubling its earnings per share. While the announced savings from Project Fusionamount to $35 million in stand-alone cost savings by 2009, the synergies realized in a sale of the company could exceed $200 million. We believe that there is considerable interest in LandAmerica from strategic acquirers and the likelihood of consummating a deal is high. It is our opinion that management and the Board of Directors should actively explore such an option.

Management and the Board of Directors of LandAmerica have an opportunity to crown their substantial achievements to date by remaining open to all potential avenues of value creation. We strongly believe that a sale of the Company is the highest and best form of value creation available to shareholders. A sale would afford shareholders a substantial return in the form of a control premium at the time of the sale and in the form of synergies that will result from the sale. We believe that the potential for substantial value creation from a sale of the Company warrants action. Therefore, we request that LandAmerica's Board of Directors engage an investment bank to solicit indications of interest from potential acquirers. We would expect LandAmerica's Board of Directors to carefully consider all acquisition proposals relative to the attractiveness of remaining independent.

Andreas Halvorsen
Chief Investment Officer

Daniel Sundheim
Portfolio Manager