Syncora Holdings Ltd. Comments on Status of Jefferson County Alabama

Subsidiary Syncora Guarantee Inc. Makes $35 Million Claim Payment 


HAMILTON, Bermuda, Aug. 4  /PRNewswire-FirstCall/ -- Syncora Holdings Ltd. (formerly known as Security Capital Assurance Ltd) (NYSE:SCA) ("Syncora Holdings" or the "Company") commented today on the ongoing financial crisis in Jefferson County, Alabama (the "County").  Today, Syncora Guarantee Inc. (formerly known as XL Capital Assurance Inc.), Syncora Holdings' primary financial guarantee insurance subsidiary, has made a $35 million claim payment as part of an agreement entered into with the County, pursuant to the terms of the insurance policies it provides for the benefit of the holders of Jefferson County's sewer warrants.

"Syncora Guarantee remains committed to honoring the terms of the financial guarantee it provides to Jefferson County's bondholders," said Edward Hubbard, Executive Vice President, Syncora Holdings Ltd., and President of Syncora Guarantee Inc.  "The payment we made today supports the efforts to resolve the County's current crisis in a responsible manner."

In conjunction with the payment, the County and Syncora Guarantee Inc. entered into an agreement whereby Syncora Guarantee Inc. will refrain until November 17, 2008 from enforcing its rights to receive immediate reimbursement from the County for this claim payment, as well as its prior $10.6 million payment made on June 3, 2008, conditioned upon the County's completion of certain steps related to a refunding of its existing sewer revenue debt.  The forbearance period could be shortened if the County does not complete such steps.

"The proposal presented to the County by Citigroup Global Markets represents a significant step in the right direction, if the County proceeds with its implementation.  We expect the County to work closely with its financial advisors and creditors and make progress in the months ahead," commented Hubbard.

As of June 30, 2008, the Company's exposure to Jefferson County was $809 million, net of reinsurance.  Syncora Guarantee Inc. has not established any loss reserves at this time in connection with Jefferson County.  There is no assurance that the County will successfully resolve its current situation, or that Syncora Guarantee Inc. will not have to make additional claims payments or incur losses in the future related to its Jefferson County Sewer exposure.

About Syncora Guarantee Inc.

Syncora Guarantee Inc. is a New York-based operating subsidiary of Syncora Holdings Ltd., a Bermuda-domiciled holding company whose common shares are listed on the New York Stock Exchange (NYSE:SCA).  Effective August 4, 2008, XL Capital Assurance Inc. changed its name to Syncora Guarantee Inc.  For more information please visit http://www.syncoraguarantee.com/ .

About Syncora Holdings Ltd

Syncora Holdings Ltd. is a Bermuda-domiciled holding company whose common shares are listed on the New York Stock Exchange (NYSE:SCA).  Effective August 4, 2008, Security Capital Assurance Ltd changed its name to Syncora Holdings Ltd.  For more information please visit http://www.syncora.com/ .

  Contact:
  Investors
  Frank Constantinople
  [phone]
  

  Media
  Michael Gormley
  [phone]
  

  Michele Loguidice
  [phone]
  

  FORWARD-LOOKING STATEMENTS


This release contains statements about future results, plans and events that may constitute "forward-looking" statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that these statements are not guarantees of future results, plans or events and such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These factors include, but are not limited to: the outcome of the efforts to refund Jefferson County Alabama's outstanding sewer system debt; the outcome of SCA's negotiations with third parties concerning the restructuring of SCA; the closing of the transactions contemplated by the Master Transaction Agreement, Merrill Agreement and other related agreements; the decision by the New York Insurance Department and the Bermuda Monetary Authority or other regulators to take regulatory action with respect to SCA's operating subsidiaries at any time; recent and future rating agency statements and ratings actions;  the outcome of our negotiations with the Financial Counterparties concerning the commutation, termination, amendment or otherwise restructuring of their credit default swap contracts; the Company's ability to successfully implement its strategic plan; higher risk of loss in connection with obligations guaranteed by the Company due to recent deterioration in the credit markets stemming from the poor performance of subprime residential mortgage loans; the suspension of writing substantially all new business and the Company's ability to continue to operate its business in its historic form; developments in the world's financial and capital markets that adversely affect the performance of the Company's investments and its access to such markets; the performance of invested assets, losses on credit derivatives or changes in the fair value of credit derivatives; the availability of capital and liquidity; the timing of claims payments and the receipt of reinsurance recoverables; greater frequency or severity of claims and loss activity including in excess of the Company's loss reserves; changes in the Company's reinsurance agreements with certain of its subsidiaries; the impact of provisions in business arrangements and agreements triggered by the ratings downgrades; the impact of other triggers in business arrangements including credit default swap contracts; changes in regulation, tax laws, legislation or accounting policies or practices; changes in officers; general economic conditions; changes in the availability, cost or quality of reinsurance or retrocessions; possible downgrade of the Company's reinsurers; possible default by the counterparties to the Company's reinsurance arrangements; the Company's ability to compete; changes that may occur in Company operations and ownership as the Company matures; and other additional factors, risks or uncertainties described in Company filings with the Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and also disclosed from time to time in subsequent reports on Form 10-Q and Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. 

DATASOURCE: Syncora Holdings Ltd.



CONTACT:  Investors, Frank Constantinople, [phone],

, or Media, Michael Gormley, [phone],

, both of Syncora Holdings; or Michele Loguidice,

[phone], , of The Brunswick Group, for

Syncora Holdings



Web site:  http://www.syncora.com/

http://www.syncoraguarantee.com/ 

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