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

HAMILTON, Bermuda, May 7 /PRNewswire-FirstCall/ -- Scottish Re Group Limited , 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, http://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 (http://www.nasd.org/ and http://www.sipc.org/); MassMutual International LLC and The MassMutual Trust Company, FSB. MassMutual is on the Internet at http://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 http://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