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 www.syncora.com.

    Investor and Media Contact:
    Michael Gormley
    +1 441-279-7450
    michael.gormley@scafg.com

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.