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Moody's, S&P Rate Program AAA; First MTN Program Administered by XLCANew York, New York, August 15, 2002 - XL Capital Group Assurance Inc. (XLCA), rated AAA by Moody's Investors Service ("Moody's"), Standard & Poor's Ratings Services ("S&P"), and Fitch Ratings, today announced that it has established a $5 billion medium-term note (MTN) program, Gulf Stream Global Funding Ltd. ("Gulf Stream"). The notes to be issued under the program will be rated by Moody's and S&P and are expected to receive ratings of Aaa and AAA, respectively. Gulf Stream, the first MTN program to be administered by XLCA, is a global program, with the ability to issue notes in both the US and Euro markets. XLCA will issue the financial guarantee policies that support the program."Gulf Stream was created to meet the diverse funding needs of XLCA's financial guarantee clients. The program provides several benefits to our clients, including access to the capital markets, reduced transaction costs and ease of execution," said Mark Dunsheath, Managing Director, Structured Funding of XLCA. "The program benefits from XLCA's top ratings, as well as our structuring, underwriting and surveillance expertise.""XLCA is dedicated to providing full-service solutions designed to meet our clients' particular needs," said David Stevens, President of XLCA. "The market has been receptive to the diversification we provide as a new name of the highest quality in the credit enhancement of securitization transactions. We now provide 'one-stop shopping' by adding funding capabilities to our structuring and guarantee services."XL Capital Group Assurance Inc., rated AAA by Moody's Investors Service, Standard & Poor's Ratings Services and Fitch Ratings, is a New York-domiciled financial guarantee insurer that specializes in corporate and consumer asset securitization, structured funds, essential infrastructure project finance, future flow securitization and U.S. public finance. At June 30, 2002, XLCA had statutory assets of approximately $205.8 million, liabilities of approximately $73.5 million and surplus as regards policyholders of approximately $132.3 million.XLCA is a subsidiary of XL Capital Ltd (NYSE: XL) which, through its principal operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. At June 30, 2002, XL Capital Ltd had consolidated assets of approximately $31.2 billion and consolidated shareholders' equity of approximately $5.4 billion.This press release may contain 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. XLCA does not undertake any duty to update publicly any forward-looking statements contained herein in light of new information or future developments.