SCA Stellus Capital Investment Corporation

Reduces Cost Structure, Aligns Resources with Current Operating Needs HAMILTON, Bermuda, March 26 /PRNewswire-FirstCall/ -- Security Capital Assurance Ltd (NYSE:SCA) ("SCA") announced today that it will reduce its workforce by approximately 60 positions. The reductions are focused largely on the insurance business origination staff and are intended to reduce long term operating costs and align resources with current needs. "Decisions such as this one are always difficult, but as we are not writing new business at this time, today's action was necessary," stated Paul Giordano, SCA's president and chief executive officer. "Our action today is consistent with our recently described plans, and we intend to treat our employees as fairly as we can under the circumstances. I am grateful for all the hard work and dedication of our employees, and for their continued professionalism in this very difficult environment." About Security Capital Assurance Ltd Security Capital Assurance Ltd is a Bermuda-domiciled holding company whose common shares are listed on the New York Stock Exchange (NYSE:SCA). For more information please visit http://www.scafg.com/. Contact: Investors Frank Constantinople +1 441-279-7450 Media Michael Gormley +1 441-279-7450 Michele Loguidice +1 212-333-3810 FORWARD-LOOKING STATEMENTS This release contains statements about future results, plans and events that may constitute "forward-looking" statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that these statements are not guarantees of future results, plans or events and such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. These factors include, but are not limited to: the outcome of the ongoing rating assessments for SCA and its subsidiaries and for all bond insurers, generally, by Fitch, Moody's and S&P, the outcome of the Company's discussions with Fitch, Moody's and S&P, and the Company's ability to successfully address any capital requirements within required timeframes; the impact of the recent ratings actions on SCA's operating subsidiaries announced on March 4, 2008 by Moody's, February 25, 2008 by S&P, and January 23, 2008 by Fitch, including the downgrades of the IFS ratings of XLCA, XLCA-U.K. and XLFA; higher risk of loss in connection with obligations guaranteed by the Company due to recent deterioration in the credit markets stemming from the poor performance of subprime residential mortgage loans; the suspension of writing substantially all new business and the Company's ability to continue to operate its business in its historic form; the development and implementation of a strategic plan; developments in the world's financial and capital markets that adversely affect the performance of the Company's investments and its access to such markets; the performance of invested assets, losses on credit derivatives or changes in the fair value of credit default swaps; the availability of capital and liquidity; the timing of claims payments and the receipt of reinsurance recoverables; greater frequency or severity of claims and loss activity including in excess of the Company's loss reserves; changes in the Company's reinsurance agreements with certain of its subsidiaries; the impact of provisions in business arrangements and agreements triggered by the ratings downgrades; the impact of other triggers in business arrangements including CDS contracts; changes in regulation, tax laws, legislation or accounting policies or practices; changes in officers; general economic conditions; changes in the availability, cost or quality of reinsurance or retrocessions; possible downgrade of the Company's reinsurers; possible default by the counterparties to the Company's reinsurance arrangements; the Company's ability to compete; changes that may occur in Company operations and ownership as the Company matures; and other additional factors, risks or uncertainties described in Company filings with the Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and also disclosed from time to time in subsequent reports on Form 10-Q and Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements are made. DATASOURCE: Security Capital Assurance Ltd CONTACT: Investors, Frank Constantinople, +1-441-279-7450, , or Media, Michael Gormley, +1-441-279-7450, , or Michele Loguidice, +1-212-333-3810, , all of Security Capital Assurance Ltd Web site: http://www.scafg.com/

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