XL to Pay Cash for Convertible Debentures

Bermuda’s XL Capital Ltd. announced that to the extent the holders of XL’s Zero-Coupon Convertible Debentures due 2021 are tendered for repurchase by XL on May 23, 2004 (the “Purchase Date”), XL has elected to pay all of the purchase price for such Debentures in cash.

XL said it “has provided a company notice containing details of the Debentures’ repurchase to U.S. Bank National Association (the trustee under the indenture governing the Debentures) to be forwarded to each holder of Debentures who wishes to tender their Debentures for repurchase by XL.”

It also noted that “holders of Debentures may require XL to repurchase all or a portion of their Debentures as of the Purchase Date at a purchase price of $641.88 per $1,000 aggregate principal amount at maturity of the Debentures properly tendered for repurchase. In the event all of the outstanding Debentures are tendered for repurchase, the aggregate purchase price would be $648,833,486.04.”