Contact:

Jim Tabacchi/Murat Akgun
CMET Holdings LLC
(212) 803-5050

Roger R. Scotton
Media Relations, XL Capital Ltd
(441) 294-7165

For Immediate Release:

Capital Markets Engineering and Trading (CMET) expects to close its second
transaction this week, a $200 million CLO-like hybrid called South Street
Securities, which establishes a $15 billion repo trading desk for the
benefit of Daiwa Securities.

CMET’s structures combine characteristics of market value CDOs and
SIVs. Unlike typical CDOs, the resulting vehicle is an operating company
owned by CMET Financial Holdings. In this case, SSS will be an actively
run the trading activities under head trader Jason Schuit.

This is CMET’s second deal this year, and the firm is hoping to
a third before 2005. The first deal, called Three Rivers Funding, closed
in February, and its trading operations (repo) beginning in March.

CMET, established four years ago, is headed up by former Citibank bankers,
including Murat Akgun and James Tabacchi.

The proceeds from the trading operation are passed into the deal as interest
payments. While the senior notes are a natural triple-A, XLCA also participates
in the transaction as a swap counterparty, in this case providing a credit
default swap against the senior class.

Like the previous deal, HSBC purchased the triple-As, sized at $140 million.
The deal also includes $20 million in triple-B rated junior notes and
$40 million in equity investment.

The CMET transactions allow firms access to trading operations without
the capital costs of running the desk. The treatment lowers the cost of
capital (the notes approximate 1.33% of the South Street’s trading
capacity, for example), while regulatory capital requirements against
a repo desk can typically range from 4% to 6%.

Risk considerations in rating these deals include repo counterparty risk
— generally considered fairly low - and market value risk.

As an operating vehicle, South Street moves in and out of positions over
the yield curve in a way that statistically produces a reliable cashflow.
Market value triggers are embedded in the deal, however, which could cause
it to unwind if certain thresholds are breached, similar to market value
CDOs.

Repo trading desks “generate revenue through establishing positive
interest rate spreads between matching repo and reverse transactions,
and taking advantage of differences in interest rates along the yield
curve,” said Cesar Crousillat, a vice president and senior analyst
at Moody’s Investors Service, which rated both of CMET’s transactions.

CMET’s use of CLO technology provides capital relief to trading
operations and was originally envisioned by CMET’s principles while
at pre-merger Citibank. The team was exploring the idea of taking Citibank’s
entire fixed-income trading operations off-balance sheet, though the task
fell by the wayside as post-merger Citigroup realigned its strategies.
- MG

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 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.

Please call 212-824-0738 for more information

News Archive

James M. Tabacchi - Capital Markets Engineering
& Trading LLC
Mr. Tabacchi joined Citicorp/Citibank in 1980. Over a period of 19 years
he has worked in various customer interface and business head positions
within the Investment, Corporate, and Consumer Banking Divisions. In 1987
Mr. Tabacchi became the regional business manager for the Northeast Division
of Citicorp Mortgage, Inc. In 1989 he was a Division Financial controller
in Citicorp’s North American Investment Bank. During 1990 Mr. Tabacchi
was asked to manage the day-to-day operations of Citibank’s Municipal
Trust business, while revamping the product lines and packaging the business
for sale, which was completed in 1992. He then joined the Finance Desk
in 1992, and was named Treasurer of Citicorp Securities, Inc. in 1995.
As Treasurer,

Mr. Tabacchi initiated an off balance sheet engineering effort to securitize
Citicorp’s fixed income business. In 1998, he was given additional
responsibilities as co-head of the Primary Dealer desk, and he was accountable
for over $50 billion in Securities Assets, Mortgage Loans, Reserves, and
Placements. In addition, Mr. Tabacchi was responsible for expanding the
Structured Finance Group, which had become the cornerstone of Citibank’s
fixed income business plans prior to the Citicorp-Travelers merger. Mr.
Tabacchi’s NASD certifications include Series 7, 63, 27 and 24.

William F. Strome - Friedman, Billings, Ramsey &
Co. Inc.
Mr. Strome is a Managing Director in FBR’s Diversified Industries Investment
Banking Group. Prior to joining FBR in May 2001, Mr. Strome was responsible
for PNC Capital Market’s Mergers and Acquisitions and Corporate Finance
Advisory Groups activities and for equity underwriting through a strategic
alliance between PNC Financial Services Group, Inc. and FBR. Prior to
joining PNC Capital Markets in 1996,

Mr. Strome was Senior Vice President, Deputy General Counsel and Corporate
Secretary of PNC Financial Services Group responsible for managing the
Corporation’s mergers and acquisitions, corporate governance, securities,
bank regulatory, lending and workout related legal matters. Mr. Strome’s
primary focus was on PNC’s mergers and acquisitions activity and general
corporate matters. He joined PNC Financial Services Group’s Legal Division
in 1981. Mr. Strome received his J.D. and M.B.A. from the University of
Pittsburgh and B.A. in Economics from Northwestern University.

Thomas Lamb - Allianz Risk Transfer, Inc.

Tom Lamb, Principal of Allianz Risk Transfer, Inc. (USA). Tom joined ART
in 1998 and his main emphasis has been in capital markets related transactions.
From 1990 to 1998,Tom was at CapMAC/MBIA in New York City where he oversaw
secondary market credit enhancement, packaged products and arbitrage.
Prior to 1990, Tom held positions at Bond Investors Guranty (BIG) and
various broker/dealers. Tom is a graduate of the University of Michigan.

Daniel L. Sussman - XL Financial Solutions Ltd
Daniel L. Sussman is Chief Executive Officer of XL Financial Solutions
Ltd, a subsidiary of XL Capital Ltd which is a New York Stock Exchange
listed insurance, reinsurance and financial services company.
XL Financial Solutions is dedicated to providing sophisticated solutions
for optimizing risk management through innovative tailored and financially
oriented solutions utilizing (re)insurance and capital market techniques.
Headquartered in Bermuda, XLFS has affiliated offices in Stamford and
London.

Mr. Sussman joined XL in February 1998 and was formerly General Counsel
and Senior Vice President with XL Capital Products Ltd, the XL subsidiary
responsible for structuring financial guaranty and other related credit
enhancement transactions. Prior to joining XL, he was associated with
the international law firm of Clifford Chance in New York, specializing
in structured finance.

Mr. Sussman, a member of the New York Bar, has law degrees from the University
of Pennsylvania Law School and Oxford University and degrees from The
Wharton School (M.A.) and Harvard University (B.A.).

Orlando Figueroa - Lord Securities Corporation
Mr. Figueroa is the Vice President – Corporate Governance and New
Business Development of Lord Securities Corporation, a management, financial
services and administration company, with operations in New York, Delaware,
and Johannesburg, South Africa, and affiliates in London and Tokyo. Mr.
Figueroa’s responsibilities at Lord include business development,
senior oversight of Lord’s corporate governance practice, and the
management all daily aspects of document review and execution, including
legal response and transaction management. In addition, he is responsible
for domicile regulatory compliance in both domestic and international
jurisdictions wherein Lord has a business presence. Prior to joining Lord,
Mr. Figueroa was associated with the law firms of Loeb & Loeb LLP
and Moses & Singer LLP.

SSS Management Team

SSS’ Customer Referral Program assists firms to move customer repo business
off balance sheet while retaining valuable customer relationships.

How does it work?

• Banks refer customers which they wish to move off balance sheet to SSS.
• The referred customers transact directly with SSS
• SSS pays referring Banks an ongoing referral fee based on the daily profitability

Why SSS?

• Repo only charter
• SSS is limited to Repurchase and Reverse Repurchase Transactions
  only.
• SSS will guarantee that they will not solicit any other capital
  markets business from referred customer by signing a Letter of Understanding.
• Referring Banks will be offering its customers to a AAA/Aaa credit
  rated broker/dealer.

Please call 212-824-0738 for more information

Repurchase Agreements

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I. Emergency Contact Persons
South Street Securities is located at 32 Old Slip, 11th Floor, New York, NY 10005, has contracted Matrix Applications to provide certain technology and business continuity services, including Emergency coordination during a crisis.
South Street Securities LLC (SSS) has a four-pronged Business Continuity Team structure that is intertwined with Matrix and Daiwa Securities America. DSA is the largest tenant at 32 Old Slip and have comprehensive disaster recovery procedures. For all intents and purposes, during a crisis, SSS will be treated as a department of DSA.
Emergency Management Team: declares a disaster and sets the direction for the recovery effort.
Disaster Recovery Coordinators: coordinate the firm-wide mandate of the EMT.
Business Recovery Coordinators: coordinate the technical and business recovery efforts for their Department.
Staff: follow the directions of the personnel above, and in this manual.
Below is the emergency contact information for the Business Recovery Coordinators (BRC), the Disaster Recovery Coordinators (DRC) and the Emergency Management Team (EMT). Personal contact information for all other employees is printed out and stored at the homes of the EMTs. All contact information is also located at the data center which can be accessed remotely.
BRC – David DeBlase (SSS)
DRC – Stephen Mellert (Matrix)
EMT – Stephanie Pucci (SSS)
Robert Cramer (DSA – Coordinator)

These names will be updated in the event of a material change, and our Chief Compliance Officer will review them within 17 business days of the end of each quarter.
Rule: NASD Rule 3520.
II. Firm Policy
Our firm’s policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees’ lives and firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm’s books and records, and allowing to SSS to transact business. South Street Securities does not maintain customer accounts, and therefore will not retain customer funds and securities, but in the event that we change our registration to accept and hold customer funds and securities, and determine we are unable to continue our business, we will assure customers prompt access to their funds and securities.
A. Significant Business Disruptions (SBDs)
Our plan anticipates two kinds of SBDs, internal and external. Internal SBDs affect only our firm’s ability to communicate and do business, such as a fire in our building. External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, a city flood, or a wide-scale, regional disruption. Our response to an external SBD we may rely more heavily on other organizations and systems.
B. Approval and Execution Authority
David DeBlase, Vice President, a registered principal, is responsible for approving the plan and for conducting the required annual review. David DeBlase has the authority to execute this BCP.
C. Plan Location and Access
Our firm will maintain copies of its BCP plan and the annual reviews, and the changes that have been made to it for inspection. An electronic copy of our plan is located on South Street Securities server in the Disaster Recovery folder.

III. Business Description
Our firm conducts business in the US Treasuries and Interest Rate Futures markets. Our firm acts solely as a Dealer and only performs a clearing function for itself. Furthermore, we do not hold customer funds or securities. We do not engage in any private placements.

IV. Office Locations
A. Office Location
Our Office is located at 32 Old Slip, 11th Floor, New York, NY 10005. The main telephone number is 212-803-5050. Our employees may travel to that office by means of car, bus, or train.

V. Alternative Physical Location(s) of Employees
In the event of an SBD, we will move our staff from affected offices of our Alternate office location. Located at 1 Evertrust Plaza, 8th Floor, Jersey City, NJ 07302 Its main telephone numbers are 201-536-2400 or 201-536-2401.
Rule: NASD Rule 3510(c)(6).
VI. Customers’ Access to Funds and Securities
SSS Acts Solely as a Dealer, and does not maintain customer accounts, and therefore our firm does not maintain custody of customers’ funds or securities,
If South Street Securities changes its registration to accept and hold customer funds and securities, and SIPC determines that we are unable to meet our obligations to our customers or if our liabilities exceed our assets in violation of Securities Exchange Act Rule 15c3-1, SIPC may seek to appoint a trustee to disburse our assets to customers. We will assist SIPC and the trustee by providing our books and records identifying customer accounts subject to SIPC regulation.
Rules: NASD Rule 3510(a); Securities Exchange Act Rule 15c3-1; 15 U.S.C. 78eee (2003).
VII. Data Back-Up and Recovery
Our firm has contracted with Matrix Applications to backup its electronic books and records. Matrix’s primary data center is located at AT&T’s IDC facility at 811 Tenth Avenue, 16th Floor, New York, NY 10019, Dave Rechen: 212-903-6118. All equipment and communication lines are fully redundant. Matrix’s disaster recovery data center is located at 4513 Western Avenue, 1st Floor, Lisle, IL 60532, Pam Rockey 630-810-6218. The Matrix Application contact is Stephen Mellert, Chief Operating Officer (646-498-8748).
Business related files are located on site at 32 Old Slip, 11th Floor, in a secure local data center. All files are also replicated to the NYC and Chicago sites, real time. Data is also backed up incrementally at night to disks. Full backups are done weekly and monthly.
SSS uses the Sector® Email Comply system that helps broker/dealers demonstrate compliance with SEC Rule 17a-4 regarding storage and management of email. It handles all of the processes involved in collecting, indexing, and archiving email to a fully compliant facility operated within the SIAC® data centers. Emails are stored for three years, on optical media located at two different physical SIAC data centers.
In the event of an internal or external SBD that causes a loss of electronic records, we will either electronically recover data from our back-up site or physically recover the storage media. If our primary site is inoperable, we will continue operations from our business continuity site or an alternate location.

Rule: NASD Rule 3510(c)(1).

VIII. Financial and Operational Assessments

A. Operational Risk
In the event of an SBD, we will immediately identify what means will permit us to communicate with our employees, critical business constituents, critical banks, critical counter-parties, and regulators. Although the effects of an SBD will determine the means of alternative communication, the communications options we will employ will include www.southstreetsecurities.com, 212-824-0738, david.deblase@southstreetsecurities.com In addition, we will retrieve our key activity records as described in the section above, Data Back-Up and Recovery (Electronic).
Rules: NASD Rules 3510(c)(3) & (f)(2).

B. Financial and Credit Risk
In the event of an SBD, we will determine the value and liquidity of our investments and other assets to evaluate our ability to continue to fund our operations and remain in capital compliance. We will contact our critical banks, and investors to apprise them of our financial status. If we determine that we may be unable to meet our obligations to those counter-parties or otherwise continue to fund our operations, we will request additional financing from our bank or other credit sources to fulfill our obligations.
If we cannot remedy a capital deficiency, we will file appropriate notices with our regulators and immediately take appropriate steps.
Rules: NASD Rules 3510(c)(3), (c)(8) & (f)(2).

IX. Mission Critical Systems
Our firm’s “mission critical systems” are those that ensure prompt and accurate processing of securities transactions, including order taking, entry, execution, comparison, allocation, clearance and settlement of securities transactions.
TradeBlazer®- Trading System
Functions:
• Trade entry
• Interface with Clearinghouse
• Interface with Securities and Funds Clearance
• Subledger with interface to General Ledger
• Archive Reporting

Mas500- General Ledger
Functions:
• Financial Reporting
• Accounts Payable
• Archive Reporting
• Interface with Subledger
BNY GCX System:
Functions:
• Delivery of Securities and Cash through Federal Reserve
Communication Systems:
• Exchange Server Emails
• Phones

A. Our Firm’s Mission Critical Systems
1. Trade Execution
During an SBD, either internal or external, we will continue to Trade through any of these methods that are available and reliable, and in addition, as communications permit, we will inform our counterparties when communications become available to tell them what alternatives they have to communicate with us.
2. Trade Entry
In the event of an internal SBD, we will enter trades into Trading System by the fastest alternative means available. In the event of an external SBD, we will maintain the trade in electronic or paper format, and enter it by the fastest means available when it resumes operations.
3. Trade Clearance
In the event of an internal SBD, we will clear securities and cash by the fastest alternative means available. In the event of an external SBD, we will maintain the clearance information in electronic or paper format, and enter it by the fastest means available when it resumes operations.
X. Alternate Communications Between the Firm and Counterparties, Employees, and Regulators
A. Counterparties
We now communicate with our counterparties using the telephone, e-mail, our Web site, fax, U.S. mail, and in person visits at our firm or at the other’s location. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. For example, if we have communicated with a party by e-mail but the Internet is unavailable, we will call them on the telephone and follow up where a record is needed with paper copy in the U.S. mail.
Rule: NASD Rule 3510(c)(7).
B. Employees
We now communicate with our employees using the telephone, e-mail, and in person. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. We will also employ a call tree so that senior management can reach all employees quickly during an SBD. The call tree includes all staff home and office phone numbers. We have identified persons, noted below, who live near each other and may reach each other in person:
The person to invoke use of the call tree is: David DeBlase
Rule: NASD Rule 3510(c)(5).
C. Regulators
We are currently members of the NASD and SEC. We communicate with our regulators using the telephone, e-mail, fax, U.S. mail, and in person. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party.
Rule: NASD Rule 3510(c)(9).

XI. Critical Business Constituents and Banks
A. Business constituents
We have contacted our critical business constituents (businesses with which we have an ongoing commercial relationship in support of our operating activities, such as vendors providing us critical services), and determined the extent to which we can continue our business relationship with them in light of the internal or external SBD. We will quickly establish alternative arrangements if a business constituent can no longer provide the needed goods or services when we need them because of a SBD to them or our firm.

Rules: NASD Rule 3510(c)(7).
B. Banks
We have contacted our banks and lenders to determine if they can continue to provide the financing that we will need in light of the internal or external SBD. The bank maintaining our operating account is: The Bank of New York 101 Barclay Street,
6E floor New York 10286 Stephen Rehm 212-815-4097
Rules: NASD Rule 3510(c)(7).
XII. Regulatory Reporting
Our firm is subject to regulation by: NASD and SEC. We now file reports with our regulators via electronic means In the event of an SBD, we will check with the SEC, NASD, and other regulators to determine which means of filing are still available to us, and use the means closest in speed and form (written or oral) to our previous filing method. In the event that we cannot contact our regulators, we will continue to file required reports using the communication means available to us.
NASD Barry Reinkraut, Compliance Examiner
e-mailbarry.reinkraut@nasd.com
mailing address:
NASD, attn: Barry Reinkraut,
One Liberty plaza, 47th Floor
New York NY, 10006
SEC Mark Schonfeld, Regional Director
e-mail: newyork@sec.gov
3 World Financial Center
Room 4300
New York, NY 10281
(212) 336-1100Rule: NASD Rule 3510(c)(8).

XIII. Disclosure of Business Continuity Plan
SSS Acts Solely as a Dealer, and does not maintain customer accounts.
If South Street Securities changes its registration we will provide in writing a BCP disclosure statement to customers at account opening, as it is requested. We also will mail it or send it electronically upon request.
Summary of the South Street Securities Business Continuity Plan
In the event of a Significant Business Disruption, South Street Securities will move our staff from New York NY office site to our disaster recovery site. South Street Securities LLC has contracted Matrix Application to provide immediate and comprehensive recovery support. The telephone number is (201) 536-2400 or (201) 536-2401
South Street Securities maintains back-ups of critical documents and data disk and computer tapes which are periodically moved from our Data Center and stored in a fire resistant facility. When necessary, this data can be restored.
South Street Securities has identified and made provision to recover all the mission critical systems required to protect our business in the event of a disruption we have evaluated our relationships with our daily critical business support providers such as phone and data transport, computer and network infrastructure, office equipment, and staffing, and have determined the extent that we can draw upon their services to help us recover our business. We feel confident that we can continue business if our home office is disrupted, or in the event of a major regional or national emergency.
Rule: NASD Rule 3510(e).
XIV. Updates and Annual Review
Our firm will update this plan whenever we have a material change to our operations, structure, business or location or to those of our clearing firm. In addition, our firm will review this BCP annually, before December 31st, to modify it for any changes in our operations, structure, business, or location
Rule: NASD Rule 3510(b).

The Money Fund Alternative for Corporate Treasurers and Passive Sweep
Accounts

Cash Managers and Corporate Treasurers that find the security of a Money
Fund has greater importance over yield can now have both. SSS’s AAA
rating gives investors the same credit characteristics of a Money Fund
without the loss of yield due to a money fund’s high expense ratios
which average 35 basis points.*

In the current interest rate environment, Money Funds will extend
the Weighted Average Maturity of their portfolios in order to create higher
yields. With expense ratios averaging 35 basis points, Money Funds need
to take incremental risk in order to generate the yield necessary to stay
competitive with other Money Market Instruments. In a rising interest
rate environment, the longer the Weighted Average Maturity of the portfolio,
the longer the fund will trail the returns of Repurchase Agreements.

* (iMoneyNet survey of the twenty largest Money Funds).

Please call 212-824-0738 for more information

Customer Referral Program

Contact:

Jim Tabacchi/Murat Akgun
CMET Holdings LLC
(212) 803-5050

Roger R. Scotton
Media Relations, XL Capital Ltd
(441) 294-7165

For Immedate Release:

New York, NY, April 23, 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), 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 brought to market by CMET and follows
the launch 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.

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 trade 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 trend 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 as a partner.”

Daniel L. Sussman, CEO of XLFS, said: “Closure of SSS validates
the demand for these platforms. In particular, XL 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 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.

News Archive