New York, NY, April 30, 2004 - CMET Holdings LLC ("CMET"), a private firm specializing in creating capital-efficient platforms for capital markets trading businesses, and XL Financial Solutions ("XLFS"), the alternative risk transfer group of XL Capital Ltd (NYSE: XL), today announced the launch of CMET's second trading platform with the commencement of operations of South Street Securities LLC ("SSS").SSS is the second newly created broker-dealer launched by CMET and follows the launch of the trading platform of Three Rivers Securities ("TRS") in December, 2003 which was the first of its kind "AAA/Aaa" rated independent repo broker/dealer.SSS has already commenced operations with a "AAA/Aaa" counterparty rating from both Standard & Poor's and Moody's rating agencies, respectively.XLFS structured a $160 million financing for SSS with additional structuring support to SSS provided by Allianz Risk Transfer (Bermuda) Limited. Certain operational functions of SSS, including trading operations, reconciliation, accounting and clearing services, will be outsourced to Daiwa Securities America Inc. ("Daiwa").James Tabacchi, CEO of CMET and CMET Finance Holdings Inc., commented: "SSS is the continuation of the platform started with TRS in December. We are very excited to expand this innovative concept and continue to bring capital efficient structures to market that revolutionize capital markets businesses. We are delighted to have XLFS continue to share our strategic vision and work along with us to this end."Daniel L. Sussman, CEO of XLFS, said: "Closure of this SSS deal validates the demand for this business structure. In particular, XLFS is pleased to grow our relationship with CMET and to commence one with Daiwa."SSS will run a $15 billion repurchase ("repo") matched-book of US Government and Agency collateral. The US Government repo market is a $4 trillion market and a key component of the US money markets. The repo market is one of the principal mechanisms through which the Federal Reserve implements monetary policy.# # #This press release contains forward-looking statements. Such statements are based on current plans, estimates and expectations. Accordingly, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement, including, without limitation, that CMET's business platform may not develop to the extent anticipated. A non-exclusive list of other important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in XL Capital Ltd's most recent reports on Form 10-K and Form 10-Q and XL Capital Group Ltd's other documents on file with the Securities and Exchange Commission. XL Capital Ltd undertakes no duty to update publicly or revise any forward-looking statements contained herein in light of new information, future developments or otherwise.
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