Investor Relations

ITASCA, Ill., Aug 03, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced that the company has completed an issuance of $400 million of senior unsecured notes through a private placement. The issuance is divided into two series: Series A for $100 million due in 2014 and bearing interest at 6.26%; and Series B for $300 million due in 2017 and bearing interest at 6.44%. The net proceeds of the offering will be used for general corporate purposes including the repayment of its existing revolving credit borrowings, acquisitions and stock repurchases.

The Company offered and sold the notes pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act"). The Company has not and does not intend to register the notes under the Securities Act. The notes may not be offered or sold in the United States absent an effective registration under, or an applicable exemption from the registration requirements of, the Securities Act.

Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in eight countries and does business in over 100 countries around the world through a network of correspondent brokers and consultants. Gallagher is traded on the New York Stock Exchange under the symbol AJG.

This press release may contain certain forward-looking statements relating to future results. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expected, depending on a variety of factors such as changes in worldwide and national economic conditions, changes in premium rates and in insurance markets generally and changes in securities and fixed income markets as well as developments in the areas of tax legislation and crude oil prices. Please refer to our filings with the Securities and Exchange Commission, including Item 1, "Business -- Information Concerning Forward-Looking Statements" and Item 1A, "Risk Factors", of our Annual Report on Form 10-K, for a more detailed discussion of these factors.

SOURCE Arthur J. Gallagher & Co.

Marsha J. Akin, Investor Relations of Arthur J. Gallagher & Co., +1-630-773-3800

http://www.ajg.com