The Atlantic Companies(R) Enters Into Agreement for Sale of Its Personal Lines Business

NEW YORK, Dec. 21, 2007 -- The Atlantic Companies(R) has entered into a definitive agreement to sell its high-net-worth personal lines business to The ACE Group of Companies. The transaction, subject to regulatory approvals and closing conditions, is expected to close within 30 days.

The acquisition encompasses the personal lines business of The Atlantic Companies, including certain systems, distribution arrangements and renewal rights. However, it excludes most of Atlantic's invested assets, and Atlantic's management believes that it will enhance Atlantic's ability to meet its ongoing obligations to policyholders and other parties by increasing policyholder surplus, reducing ongoing expenses, and improving liquidity for the ongoing commercial run-off operation.

Additional information about The Atlantic Companies can be found at www.theatlanticos.com.

Cautionary Statement Regarding Forward-Looking Statements:

Certain statements included in this press release constitute forward looking statements, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to The Atlantic Companies or the transaction described in this press release. These forward-looking statements are not historical facts but reflect management's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The Atlantic Companies and management assume no obligation to update the information contained in this press release.