Scottish Re Completes $600 Million Equity Investment by MassMutual Capital and Cerberus

    HAMILTON, Bermuda, May 7 /PRNewswire-FirstCall/ -- Scottish Re Group
 Limited (NYSE:   SCT), a global life reinsurance specialist, today announced
 the completion of the $600 million equity investment transaction announced
 November 27, 2006 by MassMutual Capital Partners LLC, ("MassMutual
 Capital"), a member of the MassMutual Financial Group, and affiliates of
 Cerberus Capital Management, L.P. ("Cerberus"), a leading private
 investment firm.
     In accordance with the Securities Purchase Agreement, MassMutual
 Capital and Cerberus each invested $300 million in Scottish Re in exchange
 for 1,000,000 newly issued convertible preferred shares ("Convertible
 Shares") of Scottish Re, which can be converted into 150,000,000 ordinary
 shares ("Ordinary Shares") of the company at any time. MassMutual Capital
 and Cerberus now hold a combined 68.7% of the voting power of Scottish Re
 shareholders.
     "We are pleased to announce the completion of the equity investment
 transaction by MassMutual Capital and Cerberus and thank our clients,
 employees and investors for their support as we have worked through this
 process. The completion of this transaction provides Scottish Re the
 capital and liquidity necessary to support our business on a go forward
 basis," said Paul Goldean, Chief Executive Officer of Scottish Re Group
 Limited. "With the transaction closed and the company returned to financial
 stability, we are now able to concentrate our full attention on
 re-establishing Scottish Re as one of the top global life reinsurance
 companies. Working in close partnership with our new majority investors and
 drawing upon their deep industry and operational knowledge, Scottish Re
 will continue to improve its operational effectiveness and credit ratings
 profile. All of us at Scottish Re look forward to working with MassMutual
 Capital and Cerberus to deliver on our financial and business goals, and
 return value to all our shareholders."
     With the close of the transaction today, Scottish Re's current board of
 directors has been expanded to eleven members. Paul Goldean and Jeffrey
 Hughes, a designee of The Cypress Group, will retain their directorship
 roles, and the following individuals have been appointed to the board
 effective immediately to fill the remaining positions.
     Jonathan Bloomer     Partner, Cerberus European Capital Advisors Ltd.
     Christopher Brody    Managing Director, Cerberus Capital Management, L.P.
     James Butler         Retired Partner, KPMG LLP
     James Chapman        Vice Chairman, JetWorks Leasing, LLC
     Thomas Finke         Managing Director, Babson Capital LLC
     Robert Joyal         Director, Jefferies Group, Inc.
     Larry Port           President and Managing Director,
                          MassMutual Capital Partners, LLC
     Michael Rollings     Executive Vice President and Chief Financial Officer,
                          Massachusetts Mutual Life Insurance Company
     Lenard Tessler       Managing Director, Cerberus Capital Management, L.P.
     "With the conclusion of this equity transaction, Scottish Re has
 entered a new chapter in its business development," added Christopher Brody
 and Larry Port, two of Scottish Re's new board members. "On behalf of the
 board, we look forward to working closely with Paul Goldean and the rest of
 the employees of Scottish Re to return the company to its position as a
 leader within the reinsurance industry and to provide long-term value to
 its shareholders. The financial stability provided to the company as a
 result of this transaction, oversight of the new board, operational support
 of the majority investors and finally, the talented people at Scottish Re
 serve as a strong foundation on which to drive future growth and success."
     Scottish Re will continue to operate its business under its current
 structure and will remain traded on the New York Stock Exchange under the
 ticker "SCT."
     Citigroup Corporate and Investment Banking and Morgan Stanley served as
 financial advisors and Debevoise & Plimpton LLP, Schulte Roth & Zabel LLP
 and Ropes & Gray LLP served as legal counsel to both MassMutual Capital and
 Cerberus in the transaction. Goldman Sachs and Bear, Stearns & Co. served
 as Scottish Re's financial advisors and LeBoeuf, Lamb, Greene & MacRae, LLP
 together with Maples & Calder served as the Company's legal counsel.
     About Scottish Re
     Scottish Re Group Limited is a global life reinsurance specialist.
 Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey,
 Ireland, Singapore, the United Kingdom and the United States. Its flagship
 operating subsidiaries include Scottish Annuity & Life Insurance Company
 (Cayman) Ltd., Scottish Re (U.S.), Inc., and Scottish Re Limited.
 Additional information about Scottish Re Group Limited can be obtained from
 its Web site, www.scottishre.com.
     About MassMutual Capital
     MassMutual Financial Group is the fleet name for Massachusetts Mutual
 Life Insurance Company (MassMutual) and its affiliates, with more than $450
 billion in assets under management at year-end 2006. Assets under
 management include assets and certain external investment funds managed by
 MassMutual's subsidiaries.
     Founded in 1851, MassMutual is a mutually owned financial protection,
 accumulation and income management company headquartered in Springfield,
 Mass. MassMutual's major affiliates include: OppenheimerFunds, Inc.; Babson
 Capital Management LLC; Baring Asset Management Limited; Cornerstone Real
 Estate Advisers LLC; MML Investors Services, Inc., member NASD and SiPC
 (www.nasd.org and www.sipc.org); MassMutual International LLC and The
 MassMutual Trust Company, FSB. MassMutual is on the Internet at
 www.massmutual.com
     MassMutual Capital is a limited liability company created by
 Massachusetts Mutual Life Insurance Company to focus on strategically
 investing in business opportunities as a means of optimizing the value of
 the enterprise on behalf of MassMutual and other investors.
     About Cerberus Capital Management
     Established in 1992, Cerberus Capital Management, L.P. is one of the
 world's leading private investment firms with approximately $23.5 billion
 under management in funds and accounts. Through its team of more than 275
 investment and operations professionals, Cerberus specializes in providing
 both financial resources and operational expertise to help transform
 undervalued companies into industry leaders for long-term success and value
 creation. Cerberus is headquartered in New York City, with affiliate and/or
 advisory offices in Chicago, Los Angeles, Atlanta, London, Baarn,
 Frankfurt, Tokyo, Osaka and Taipei. More information on Cerberus can be
 found at www.cerberuscapital.com.
     Forward-Looking Statement
     Certain statements included herein are "forward-looking statements"
 within the meaning of the federal securities laws. The management of
 Scottish Re Group Limited (the "Company") cautions that forward-looking
 statements are not guarantees and actual results could differ materially
 from those expressed or implied in the forward-looking statements.
 Investors are also directed to consider the risks and uncertainties
 discussed in documents filed by the Company with the Securities and
 Exchange Commission
     Scottish Re contacts
     Sarah Lubman / Catherine Jones
     Brunswick Group
     212-333-3810
 
     MassMutual Capital contacts
     Mark Cybulski
     413-744-5427
 
     Jim Lacey
     413-744-2365
 
     Cerberus contacts
     Peter Duda
     212-445-8213
 
     J.J. Rissi
     212-445-8224
 
 

SOURCE Scottish Re Group Limited

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