SCA Stellus Capital Investment Corporation

HAMILTON, Bermuda, Oct. 1 /PRNewswire-FirstCall/ -- Syncora Holdings Ltd. ("Syncora" or the "Company") (NYSE:SCA) announced today that J.P. Morgan has been engaged as an advisor to assist Syncora Guarantee Inc. ("Syncora Guarantee") in identifying and analyzing strategic alternatives with respect to its portfolio of credit default swap ("CDS") and financial guarantee contracts. J.P. Morgan will work directly with Syncora's legal advisors during negotiations with Syncora Guarantee's CDS and financial guarantee bank counterparties. "Engaging J.P. Morgan to assist Syncora's legal advisors in their ongoing analysis of Syncora Guarantee's CDS and financial guarantee exposures is an important step in moving forward with the next phase of our strategic plan. Their expertise will help to identify and quantify the best possible solutions with our bank counterparties and aid Syncora in reaching a resolution that is in the best interest of our policyholders and our shareholders," commented Susan Comparato, Acting Chief Executive Officer of Syncora. On August 5, 2008, Syncora entered into an agreement with 17 bank counterparties to commute, terminate, amend or restructure, existing CDS and financial guarantee contracts, including those related to Syncora Guarantee's collateralized debt obligations of asset-backed securities ("CDO of ABS") insured portfolio. About Syncora Holdings Ltd Syncora Holdings Ltd. is a Bermuda-domiciled holding company whose common shares are listed on the New York Stock Exchange (NYSE:SCA). Syncora Holdings Ltd. was formerly known as Security Capital Assurance Ltd. For more information, please visit http://www.syncora.com/. Investor and Media Contact: Michael Gormley +1 441-279-7450 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: higher risk of loss in connection with obligations guaranteed by the Company due to deterioration in the credit markets stemming from the poor performance of subprime residential mortgage loans; the outcome of our negotiations with the bank counterparties concerning the commutation, termination, amendment or otherwise restructuring of their CDS contracts; the decision by our regulators to take regulatory action with respect to the Company's operating subsidiaries at any time; the availability of capital and liquidity; 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; changes in regulation, tax laws, legislation or accounting policies or practices; our assumptions concerning the tax treatment of the transactions contemplated by the master transaction agreement and related agreements and related transactions; the outcome of the efforts to refund Jefferson County, Alabama's outstanding sewer system debt and the outcome of related litigation; the performance of invested assets, losses on credit derivatives or changes in the fair value of credit derivatives; recent and future rating agency statements and ratings actions; the suspension of writing substantially all new business and the Company's ability to continue to operate its business in its historic form; the outcome of litigation; 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; 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 officers and key employees; 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: Syncora Holdings Ltd. CONTACT: Michael Gormley, Syncora Holdings, +1-441-279-7450, Web site: http://www.scafg.com/

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