RCA SYNDICATE #1, LTD. LIQUIDATED

CHICAGO -- RCA Syndicate #1, Ltd., a member of the INEX Insurance Exchange (formerly known as the Illinois Insurance Exchange), was placed under an Order of Liquidation on June 5, 2000. The Cook County Circuit Court granted Illinois Insurance Director Nat Shapo's petition based on the Insurance Department's findings that the company's policyholder surplus was impaired by over $2 million. The court order includes a finding of insolvency.

RCA has been in runoff for over one year. The company wrote direct and assumed reinsurance under various programs of commercial auto liability and physical damage, general liability, garage keepers, used car dealers, sand and gravel haulers, as well as insurance agents' errors and omissions in several states on an excess and surplus lines basis. Any contract holders with business that may still be in-force will be notified that assumed reinsurance contracts were canceled upon entry of the order, and that direct policyholders will be canceled at 12:01 a.m. on July 5, 2000, unless their policies expired or are terminated at an earlier date.

The company has been under an Order of Conservation since May 11, 2000, and will continue under Director Shapo's control in liquidation. The syndicate, a wholly owned subsidiary of L & W Holdings, Inc., a Nevada domiciled insurance holding company, commenced business in 1982 under the rules and regulations of the Illinois Insurance Exchange.

RCA is a member of the INEX Insurance Exchange Guaranty Fund, which may provide up to an aggregate $15 million of coverage, not to exceed $300,000 per claimant, to assist the liquidator in meeting obligations of policyholders. The liquidation proceedings are being handled on behalf of the Director of Insurance by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, Illinois 60654; (312) 836-9500.