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New York, New York, November 13, 2002 – XL Capital Group Assurance Inc. (“XLCA”), rated triple-A by Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”), and Fitch Ratings (“Fitch”), today announced that it has issued a financial guarantee insurance policy for a US$400 million floating-rate bond issue by Challenger III Asset Securitization Specialty Co. Samsung Card Co., Ltd., which is the second largest credit card company in South Korea by market share, originated and will service the credit card receivables collateralizing the bonds.The transaction was rated triple-A by Moody’s and S&P as a result of XLCA’s unconditional and irrevocable guarantee of timely payment of interest and ultimate repayment of principal by January 2007.There is a swap agreement in place to mitigate the currency and interest rate mismatches between the fixed-rate KRW-denominated credit card receivables and the floating rate U.S. dollar-denominated bond. XLCA provides a swap guarantee to insure the bond issuer’s certain payment obligations to the swap counterparty.The Hongkong and Shanghai Banking Corporation Limited served as arranger and lead manager.Jay H. Moon, General Manager, Securitization of Samsung Card, said, “This transaction is the third cross-border securitization for Samsung Card Co. We are pleased to say that amongst credit card companies in Korea, Samsung Card is the most active in using securitizations, as we have just done with XLCA, to tap the international markets for financing.”Sarwar Ahmad, Head of Securitisation & Structured Debt Capital Markets at HSBC, commented, “Samsung Card have achieved the most economically and operationally efficient structure implemented by any Korean credit card company to date, whilst incorporating all the credit elements required to obtain a AAA/Aaa rating. The success of the transaction accentuates HSBC’s global approach to addressing our clients’ financing needs and we are proud to have acted as the arranger and lead manager of this landmark transaction.”Christopher Tucker, a Director at XLCA, commented, “This transaction represents XLCA’s first financial guarantee policy enhancing South Korean receivables and demonstrates our ability to structure transactions that satisfy our clients’ specific objectives. We are pleased to have had the opportunity to work with one of the top credit card companies in the market.”XL Capital Group Assurance Inc., rated triple-A by Moody’s, S&P, and Fitch, 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 September 30, 2002, XLCA had statutory assets of approximately $163.5 million, liabilities of approximately $35.2 million and surplus as regards policyholders of approximately $128.3 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 September 30, 2002, XL Capital Ltd had consolidated assets of approximately $34.1 billion and consolidated shareholders’ equity of approximately $5.9 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.Press Advisory: Please note XLCA’s new address, email address, phone and fax numbers.