Quanta Announces Entering into Agreement for Sale of its Lloyd's Interests

HAMILTON, Bermuda--(Business Wire)--
Quanta Capital Holdings Ltd. (NASDAQ: QNTA) announced today that
it has entered into an agreement for the sale of all of its interests
at Lloyd's to Chaucer Holdings PLC. The Company expects to close this
transaction in the very near future. Quanta's interests at Lloyd's
include its 15% interest in Pembroke JV Ltd. and 100% of Quanta 4000
Ltd., its corporate member which is a member of Syndicate 4000. Upon
closing, Quanta subsidiary Quanta 4000 Holding Company Ltd. will
receive the return of approximately $116.0 million on deposit with the
Society at Lloyd's, known as "Funds at Lloyd's". These funds are not
distributable to Quanta Capital Holdings Ltd. without approval of the
Bermuda Monetary Authority.

The Company was carrying its Lloyd's interests, consisting of
Funds at Lloyd's, 100% of the equity of Quanta 4000 Ltd. and 15% of
the equity of Pembroke JV Ltd, at net asset value of approximately
$107.0 million at September 30, 2007. Upon completion and reflecting
transaction costs and other adjustments, this sale will represent
receipt of 107% of net asset value as of September 30, 2007. Following
the sale, the Company will no longer have an underwriting segment and
will consist solely of run-off operations.

James J. Ritchie, the Company's Chairman, commented "Last year, we
announced the formation of Pembroke as a means of stabilizing Quanta's
underwriting operations in Lloyd's, thereby preserving the value of
our investment in Syndicate 4000. The success of that initiative is
apparent in today's announcement; upon closing, we will have
successfully secured the earlier-than-expected release of our Funds at
Lloyd's and completed the sale of our interests at a respectable
premium above net asset value. We wish Chaucer and the Pembroke
management team success in continuing to grow the value of these
operations."

About Quanta Capital Holdings Ltd.

Quanta Capital Holdings Ltd. is a Bermuda holding company, with
interests in specialty insurance and reinsurance that it is actively
running off. The Company maintains offices in Bermuda, Ireland and the
United States.

The statements contained in this press release may include
forward-looking statements within the meaning of the federal
securities law, which reflect the Company's current views with respect
to future events and financial performance. Statements which include
the words "believes," "expects," "intends," "estimates," "projects,"
"predicts," "assumes," "anticipates," "plans," and "seeks" and
comparable terms of a future or forward-looking nature identify
forward-looking statements in form for purposes of the U.S. federal
securities laws or otherwise. As forward-looking statements, these
statements involve risks, uncertainties and other factors that could
cause actual results to differ materially from the expected results.
These include, but are not limited to, the Company's ability to
effectively implement and manage the run-off of its business lines;
unfavorable claims experience related to the run-off of the Company's
business lines; the Company's inability to retain members of its
management team and key employees; implementation of any changes based
on the Company's analysis of its business, the run-off of its business
or any strategic alternatives, which involves substantial
uncertainties and risks that may result in unforeseen expenses and
costs; the Company's loss estimates relating to its exposure to
Hurricanes Katrina, Rita and Wilma are preliminary and the actual
amount of losses may vary significantly from its estimates based on
such data; the failure to remedy any weakness found in the Company's
evaluations of controls required by Section 404 of the Sarbanes-Oxley
Act of 2002; large aggregate exposures in certain lines of business;
the failure of any of the loss limitation methods; competition;
uncertainties in the Company's reserving process; a change in the
Company's tax status; changes in accounting policies; changes in
general economic conditions; the Company's limited operating history;
the Company's inability to maintain or enter into adequate credit
facilities and other factors detailed in the Company's filings with
the SEC. The Company assumes no obligation to update or supplement
forward-looking statements to reflect subsequent events or
circumstances.

Media:
Joseph LoBello, 212-986-6667
OR
Investors:
Jonathan J.R. Dodd, 441 294 6355

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