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XLCA-UK Guarantees £313 Million Newcastle Hospitals UK PFI Deal

 — London, May 9, 2005 - XL Capital Group Assurance (U.K.) Limited (XLCA-UK) announced today that it has issued a triple-A rated financial guarantee for the £313 million Newcastle Hospitals Private Finance Initiative (PFI). XLCA-UK's guarantee, its first guarantee for a UK hospital financing, covers a £198 million bond issue and a £115 million European Investment Bank ("EIB") loan. PFI is a government or public authority initiative to acquire private financing for public sector infrastructure.
Proceeds from the bond issue will be used to replace old infrastructure, including building a new renal unit, cancer treatment center, and car park at Freeman Hospital; and, at the Royal Victoria Infirmary, building a new acute health facility, paediatric facility and clinical support block. The project, located in Newcastle-upon-Tyne, 350 km northwest of London, is scheduled to be completed in May 2013.
Gary Lucas, commercial director of Equion, the consortium that managed the project, said, "XLCA's experience and commitment to responsive client service were instrumental in the strong investor response to, and success of, the Newcastle Hospitals transaction. We welcomed the opportunity to diversify our triple-A guarantee providers by working with XLCA."
Alberto Ramos, XLCA-UK managing director and head of Global Infrastructure, said, "XLCA is committed to the UK PFI market, and to providing essential projects like Newcastle Hospitals with greater market access through cost- effective, triple-A rated financing. We look forward to building a long-term relationship with Equion, Commonwealth Bank of Australia, and Interserve, and to deepening our relationship with the EIB."
XLCA-UK, licensed by the Financial Services Authority, is a wholly owned subsidiary of XL Capital Group Assurance Inc. (XLCA). XLCA, rated triple-A by Moody's Investors Service, Standard & Poor's Ratings Services, and Fitch Ratings, is a full-service monoline financial guaranty company focusing on global infrastructure, power & utilities, U.S. public finance, consumer and commercial asset securitization, and structured investment products. XLCA is an indirect, wholly owned subsidiary of XL Capital Ltd (NYSE: XL), which, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products and services to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. Visit www.xlca.com.
THIS PRESS RELEASE IS NOT AN OFFER FOR THE SALE OF SECURITIES IN THE UNITED STATES, NOR IS IT A SOLICITATION OF AN OFFER TO BUY SECURITIES IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933.

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