Lincoln, Nebraska. July 9, 2003.

Further to the last press release on June 20, 2003, the Joint Provisional Liquidators ("JPLs") wish to take this opportunity to issue an update as to the developments in the provisional liquidation of National Warranty Insurance Risk Retention Group ("NWIC").

The work carried out by the JPLs to date has confirmed their opinion that NWIC is likely insolvent. The hearing of NWIC’s winding up petition is to take place on August 1, 2003 in the Grand Court of the Cayman Islands.

During the last two weeks, there has been a useful dialogue between the JPLs and representatives of the major creditor groups of NWIC. The rationale behind this dialogue is that NWIC’s current position, of not paying claims nor taking on new business, is having serious and widespread effects not only for the creditors themselves, but also dealers and holders of vehicle service contracts. In order to alleviate these effects as soon as practically possible, the JPLs are willing to explore any alternatives that can be put in place, with the agreement of both the Cayman and US Courts, to release some funding to the major creditor groups of NWIC .

There is great concern regarding the difficulties that NWIC’s provisional liquidation is causing which is the reason why the JPLs are working towards an interim solution with the major creditor groups. It is hoped that this may be put in place shortly.