Scottish Re Announces New Strategic Focus

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Scottish Re Group Limited (NYSE:SCT), or the "Company," announces
that the Board of Directors has determined to alter the Company´s
strategic focus. The change in strategy is a direct response to
prevailing market conditions and other business challenges including:

-- The continuing deterioration in the market for sub-prime and
Alt-A residential mortgage-backed securities and the resulting
adverse impact this has had, and will likely continue to have,
on the Company´s consolidated investment portfolio;

-- The ratings action taken by Standard & Poor´s on January 31,
2008 lowering the financial strength ratings of the Company´s
operating subsidiaries from BB+ to BB (marginal) and placing
the ratings on CreditWatch with negative implications, as well
as the negative outlook placed on the Company´s financial
strength ratings by other rating agencies, with the resulting
material negative impact on the Company´s ability to achieve
its goal of an A- or better rating by the middle of 2009; and

-- The material negative impact of ratings declines and negative
outlooks by rating agencies on the Company´s ability to grow
its life reinsurance businesses and maintain its core
competitive capabilities.

In light of these circumstances, the Board instructed management
to prepare an assessment of the various strategic alternatives that
might be available to the Company to maximize shareholder value. In
that regard, on January 21, 2008 the Board established a Special
Committee of the Board to evaluate the alternatives developed by
management. The Special Committee does not include any Board members
designated for election by SRGL Acquisition, LDC (an affiliate of
Cerberus Capital Management, L.P.) nor MassMutual Capital Partners LLC
(or their affiliates), who together are the Company´s majority
shareholders. The Special Committee engaged a financial advisor and
legal counsel to assist in their evaluation process. Subsequent to
various meetings and upon careful consideration, the Special Committee
recommended to the Board, at its regularly scheduled meeting on
February 21, 2008, to accept management´s revised business strategy.
The Board unanimously adopted the Special Committee´s recommendations
and the Company will now actively pursue the following key strategies:

-- Pursue dispositions of the Company´s non-core assets or lines
of business, including the International Life Reinsurance
segment and the Wealth Management business;

-- Develop, through strategic alliances or other means,
opportunities to maximize the value of the Company´s core
competitive capabilities within the North American Life
Reinsurance segment, including mortality assessment and treaty
administration; and

-- Rationalize the Company´s cost structure to preserve capital
and liquidity.

There can be no assurance that any of these key strategies will be
successful and each of them may be subject to review by insurance
regulators. The Company will report further developments regarding any
strategic actions only as circumstances warrant.

As a result of the decision by the Board to pursue the revised
strategies and in recognition of the change in the Company´s
circumstances and the impact thereof on the Company´s growth
prospects, the Company has established a retention program for certain
essential employees that provides financial incentives to remain with
the Company.

The Company will provide financial and other information for the
year ended December 31, 2007 in its Form 10-K to be filed with the
Securities and Exchange Commission and plans to hold an earnings
conference call to discuss year end results. Details regarding this
earnings call will be the subject of a separate press release.

About Scottish Re

Scottish Re Group Limited is a global life reinsurance specialist.
Scottish Re has operating businesses in Bermuda, Grand Cayman,
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 Website, www.scottishre.com

Certain statements included herein are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act. Forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results to differ materially from the forward-looking statements.
Management of the Company cautions that these forward-looking
statements are not guarantees of our future performance and are
subject to risks and uncertainties that could cause actual results to
differ materially from the results expressed or implied by the
forward-looking statements.

Investors are directed to consider the risks and uncertainties
discussed in documents filed by the Company with the Securities and
Exchange Commission.

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