Tower Group, Inc. Appoints William W. Fox, Jr. to Board of Directors

Mr. Fox, age 64, was most recently the President of Balis & Co.,Inc. ("Balis"), now a subsidiary of Guy Carpenter & Co. engaged in thereinsurance business. Mr. Fox was employed by Balis from 1962 through1988, and again from 1992 through May, 1999. In 1967, Balis wasacquired by Marsh & McLennan Companies and integrated with itsreinsurance brokerage division, Guy Carpenter. Mr. Fox had a number ofpositions at Balis, including senior casualty reinsurance broker, andwas President from 1985 through 1988 and again, from 1992 through1999. Mr. Fox also served as a member of Guy Carpenter's ExecutiveCommittee, as a member of Guy Carpenter's Board of Directors, and as aManaging Director of J&H, Marsh & McLennan. While at Balis, between1992 and 1999, Mr. Fox also was the Chief Executive Officer of ExcessReinsurance Company.

In 1988, Mr. Fox founded PW Reinsurance Management Company ("PWGroup"), as a joint venture with Providence Washington InsuranceCompany ("Providence") to underwrite reinsurance on behalf ofProvidence. Mr. Fox was a Senior Vice President of Providence from1988 to 1989, where he served on the Management Committee and wasresponsible for selecting and overseeing reinsurance intermediaries.In 1989, the Baloise Insurance Group of Basel, Switzerland acquiredProvidence and appointed Mr. Fox President of the PW Group, where hewas instrumental in Providence's acquisition of Colorado CasualtyCompany.

Mr. Fox also served as a Director on the Boards of InsuranceServices Offices, Legal Mutual Insurance Society of Maryland, PennMutual Insurance Group and Green Tree Perpetual Insurance Company. Mr.Fox is a member of the CPCU Society and holds a Pennsylvania Propertyand Casualty Broker's License. Mr. Fox has also been certified as anarbitrator by ARIAS-US, and currently serves as a party-appointedarbitrator or umpire on reinsurance disputes.

Mr. Michael H. Lee, Chairman, President and Chief ExecutiveOfficer of Tower, stated, "William Fox has a long and distinguishedbackground in the insurance industry as a senior reinsuranceexecutive. His expertise should be a tremendous benefit to the Boardand our company especially as we enter into a strategic relationshipwith CastlePoint Holdings, Ltd., a Bermuda-based holding company thatTower has sponsored."

About Tower Group, Inc.

Tower Group, Inc., headquartered in New York City, offers propertyand casualty insurance products and services through its insurancecompany and insurance service subsidiaries. Its two insurance companysubsidiaries are Tower Insurance Company of New York which is rated A-(Excellent) by A.M. Best Company and offers commercial insuranceproducts to small to medium-size businesses and personal insuranceproducts to individuals and Tower National Insurance Company which isalso rated A- (Excellent) by A.M. Best Company. Its insurance servicessubsidiary, Tower Risk Management, acts as a managing general agency,adjusts claims and negotiates reinsurance terms on behalf of otherinsurance companies.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a"safe harbor" for forward-looking statements. This release or anyother written or oral statements made by or on behalf of the Companymay include forward-looking statements that reflect the Company'scurrent views with respect to future events and financial performance.All statements other than statements of historical fact included inthis release are forward-looking statements. Forward-lookingstatements can generally be identified by the use of forward-lookingterminology such as "may," "will," "plan," "expect," "intend,""estimate," "anticipate," "believe" or "continue" or their negative orvariations or similar terminology. All forward-looking statementsaddress matters that involve risks and uncertainties. Accordingly,there are or will be important factors that could cause our actualresults to differ materially from those indicated in these statements.We believe that these factors include but are not limited toineffectiveness or obsolescence of our business strategy due tochanges in current or future market conditions; increased competitionon the basis of pricing, capacity, coverage terms or other factors;greater frequency or severity of claims and loss activity, includingas a result of natural or man-made catastrophic events, than ourunderwriting, reserving or investment practices anticipate based onhistorical experience or industry data; the effects of acts ofterrorism or war; developments in the world's financial and capitalmarkets that adversely affect the performance of our investments;changes in regulations or laws applicable to us, our subsidiaries,brokers or customers; changes in the level of demand for our insuranceand reinsurance products and services, including new products andservices; changes in the availability, cost or quality of reinsuranceand failure of our reinsurers to pay claims timely or at all; loss ofthe services of any of our executive officers or other key personnel;the effects of mergers, acquisitions and divestitures; changes inrating agency policies or practices; changes in legal theories ofliability under our insurance policies; changes in accounting policiesor practices; and changes in general economic conditions, includinginflation and other factors. Forward-looking statements speak only asof the date on which they are made, and the Company undertakes noobligation to update publicly or revise any forward-looking statement,whether as a result of new information, future developments orotherwise.

For more information visit Tower's website athttp://www.twrgrp.com/.