XL Capital Ltd Announces that Underwriters Exercised Their Options to Purchase Additional...

XL Capital Ltd Announces that Underwriters Exercised Their Options to Purchase
Additional Ordinary Shares and Equity Security Units

HAMILTON, Bermuda, July 31 /PRNewswire-FirstCall/ -- XL Capital Ltd ("XL"
or the "Company") (NYSE: XL) announced today that the underwriters exercised
their options to purchase an additional 18,750,000 ordinary shares and an
additional 3,000,000 equity security units in connection with XL's previously
announced plans to sell 125,000,000 ordinary shares and 20,000,000 equity
security units. Following closing of both offerings on August 5, 2008, total
gross proceeds to XL are expected to be approximately $2.875 billion.
The joint book-running managers for the offerings are Goldman, Sachs & Co.
and UBS Investment Bank. Full details of the offerings, including a
description of the ordinary shares and the equity security units and certain
risk factors related to the Company and these securities, are contained in a
prospectus supplement that is available through the underwriters. Any offer
will be made only by means of a prospectus, including a prospectus supplement,
forming a part of the Company's effective shelf registration statement. A
copy of the prospectus supplement meeting the requirements of Section 10 of
the Securities Act of 1933 may be obtained from either (i) Prospectus
Department, 100 Burma Road, Jersey City, NJ 07305. Phone: (212) 902-1171,
Facsimile: (212) 902-9316, and e-mail at prospectus-ny@ny.email.gs.com or
(ii) UBS Prospectus Department, UBS Investment Bank, Attn: Prospectus
Department, 299 Park Avenue, New York, NY 10171 or by calling (888) 827-7275.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the ordinary shares, equity security
units or any other securities, nor will there be any sale of the ordinary
shares, equity security units or any other securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state
or jurisdiction.
# # #
This press release contains forward-looking statements. Statements that
are not historical facts, including statements about XL's beliefs, plans or
expectations, are forward-looking statements. These statements are based on
current plans, estimates, and expectations. Actual results may differ
materially from those included in such forward-looking statements and
therefore you should not place undue reliance on them. A non-exclusive list of
the important factors that could cause actual results to differ materially
from those in such forward-looking statements includes (a) the risk that the
transactions described above are not completed for any reason; (b) greater
risk of loss in connection with obligations guaranteed by certain of our
insurance company operating affiliates due to recent deterioration in the
credit markets stemming from the poor performance of sub-prime residential
mortgage loans; (c) greater frequency or severity of claims and loss activity
than XL's underwriting, reserving or investment practices anticipate based on
historical experience or industry data; (d) trends in rates for property and
casualty insurance and reinsurance; (e) developments in the world's financial
and capital markets that adversely affect the performance of XL's investments
or access to such markets including, but not limited to, further market
developments relating to sub-prime and residential mortgages; (f) changes in
general economic conditions, including foreign currency exchange rates,
inflation and other factors; (g) changes in the size of XL's claims relating
to natural catastrophe losses due to the preliminary nature of some reports
and estimates of loss and damage to date and (h) the other factors set forth
in XL's most recent reports on Form 10-K, Form 10-Q, and other documents on
file with the Securities and Exchange Commission, as well as management's
response to any of the aforementioned factors. XL undertakes no obligation to
update or revise publicly any forward-looking statement, whether as a result
of new information, future developments or otherwise.
SOURCE XL Capital Ltd

David Radulski, Investor Relations, +1-441-294-7460, or Carol A. Parker Trott,
Media Relations, +1-441-294-7290, both of XL Capital Ltd