XL Capital Announces Election to Pay for Liquid Yield Option(TM) Notes

August 5, 2003

XL Capital Ltd announced that to the extent that holders of XL’s Liquid Yield Option(TM) Notes due 2021 (“LYONs”) tender any LYONs for purchase by XL on Sept. 8, 2003 (the “Purchase Date”), XL has elected to pay all of the purchase price for such LYONs in cash. XL has provided a company notice containing details of the LYONs repurchase to U.S. Bank National Association (the trustee under the indenture governing the LYONs) to be forwarded to each holder of the LYONs who wishes to tender their LYONs for purchase by XL.

XL Capital Ltd announced that to the extent that holders of XL’s Liquid Yield Option(TM) Notes due 2021 (“LYONs”) tender any LYONs for purchase by XL on Sept. 8, 2003 (the “Purchase Date”), XL has elected to pay all of the purchase price for such LYONs in cash. XL has provided a company notice containing details of the LYONs repurchase to U.S. Bank National Association (the trustee under the indenture governing the LYONs) to be forwarded to each holder of the LYONs who wishes to tender their LYONs for purchase by XL.

Holders of LYONs may require XL to purchase all or a portion of their LYONs as of the Purchase Date at a purchase price of $601.16 per $1,000 aggregate principal amount at maturity of the LYONs properly tendered for purchase. In the event all of the outstanding LYONs are tendered for repurchase, the aggregate purchase price would be $305,895,456.72.

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