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Scottish Re Announces New Strategic Focus


    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.