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XL Capital Increases Cash Offer For Capital Re Corporation To $13.00 Per Share

11 11 1999

HAMILTON, BERMUDA October 11, 1999 -- XL Capital Ltd ("XL Capital") (NYSE: XL, BSX: XL.BH) announced today that it increased its offer to acquire Capital Re Corporation ("Capital Re") (NYSE: KRE) in a one-step merger transaction to $13 per share in cash. XL Capital also stated that it has offered to enter into a merger agreement with Capital Re similar to Capital Re's merger agreement with ACE Limited ("ACE") (NYSE: ACL) and pay the $25 million termination fee to the extent required if the agreement with ACE is terminated in accordance with its terms. Upon signing a merger agreement with Capital Re, XL Capital also would provide Capital Re a $50 million Stand-By Capital Commitment.

Through its subsidiaries, XL Capital provides insurance and reinsurance coverages and financial products worldwide. As of June 18, 1999, XL Capital had consolidated assets of approximately $14.1 billion and consolidated shareholders' equity of approximately $5.6 billion. Additional information is available on the XL Capital web site at www.xl-capital.com.

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