election portion of its recently completed merger with Mid Ocean Ltd.

In the merger, former EXEL shareholders and Mid Ocean shareholders were given the opportunity to elect cash in lieu of shares of New EXEL in exchange for their respective shares up to an aggregate of $204 million for Old EXEL shareholders (on a pro rata basis) and an aggregate of $96 million for Mid Ocean shareholders (on a pro rata basis).

The cash election period expired on August 1, 1998, and the cash election was fully subscribed by both Old EXEL shareholders and Mid Ocean shareholders, resulting in proration ratios of 74.056% and 23.580%, respectively.

Shareholders receive cash The cash was distributed to shareholders who had elected to receive cash on August 14, 1998.

Each Old EXEL share electing cash will receive approximately $60.16 in cash and approximately 0.25944 of a share of New EXEL, and each Mid Ocean share electing cash will receive approximately $19.57 in cash and approximately 0.78063 of a share of New EXEL.

Each Old EXEL share not electing cash has been exchanged for the right to receive one New EXEL share, and each Mid Ocean share not electing cash has been exchanged for the right to receive 1.0215 New EXEL shares.