Scott + Scott LLP and Milberg Weiss LLP Announce the Proposed Settlement of a Securities Class Action Lawsuit against Remaining Defendant KPMG in Bermuda for $10.5 Million in Cash

In the United States District Court for the District of
Connecticut, in Schnall, et al. v. Annuity and Life Re (Holdings),
Ltd., et al., Civil Action No. 02 CV 2133 (EBB), a summary notice has
been issued as follows:

Summary Notice of Proposed Settlement of Class Action with
Remaining Defendant KPMG Bermuda and Settlement Hearing

To: all persons and entities who purchased or otherwise acquired
the securities of Annuity and Life Re (Holdings), Ltd. ("ANR") during
the period between March 15, 2000 and November 19, 2002, inclusive,
and were damaged thereby (the "Class").

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules
of Civil Procedure and an Order of the Court, that the above-captioned
action has been certified as a class action for settlement purposes
only and that a $10.5 million cash settlement ("KPMG Settlement") has
been proposed with the sole remaining defendant, KPMG Bermuda, ANR´s
outside accountant during the Class Period.

A hearing will be held before the Honorable Ellen Bree Burns in
the United States Courthouse, 141 Church Street, New Haven,
Connecticut 06510, at 10:00 a.m. on June 5, 2008 to determine whether
the proposed settlement should be approved by the Court as fair,
reasonable, and adequate, and to consider the application of
Plaintiffs´ Counsel for attorneys´ fees and reimbursement of expenses.

This KPMG Settlement is in addition to a prior $16.5 million
settlement with ANR, XL Capital, Ltd. and certain of ANR´s officers
and directors, which was approved by the Court on January 21, 2005.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL
BE AFFECTED AND YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT FUND.
If you have not yet received the full printed Notice of Proposed
Settlement of Class Action with Remaining Defendant KPMG Bermuda,
Motion for Attorneys´ Fees and Settlement Fairness Hearing (the "KPMG
Settlement Notice"), you may obtain a copy by contacting:

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Annuity and Life Re (Holdings), Ltd. Securities Litigation
c/o The Garden City Group, Inc.
Claims Administrator
Post Office Box 9254
Dublin, OH 43017-4654
(800) 298-3208
www.gardencitygroup.com
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Inquiries, other than requests for the forms of the KPMG
Settlement Notice and the Proof of Claim, may be made to Plaintiffs´
Co-Lead Counsel:

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David R. Scott, Esq.
Scott + Scott LLP
108 Norwich Avenue
P.O. Box 192
Colchester, CT 06415
Telephone: (860) 537-5537

Barry A. Weprin, Esq.
Milberg Weiss LLP
One Pennsylvania Plaza
New York, NY 10119-0165
Telephone: (212) 594-5300
*T

To participate in the KPMG Settlement, if you did not previously
submit an acceptable Proof of Claim in connection with the prior
settlement, you must request and submit a Proof of Claim no later than
July 7, 2008. Copies of the Proof of Claim form may be obtained at
www.gardencitygroup.com or by contacting the Claims Administrator
identified above. IF YOU PREVIOUSLY SUBMITTED A VALID PROOF OF CLAIM
IN CONNECTION WITH THE PRIOR SETTLEMENT, YOU NEED NOT RESUBMIT YOUR
CLAIM, AS YOUR PRIOR CLAIM WILL ENTITLE YOU TO SHARE IN THIS
SETTLEMENT.

If you are a Class Member and do not exclude yourself from the
Class, you will be bound by the Order and Final Judgment of the Court.
To exclude yourself from the Class, you must submit a request for
exclusion postmarked no later than May 6, 2008.

Any objections to the KPMG Settlement must be filed by May 7,
2008.

If you are a Class Member and did not previously (or do not now)
submit a proper Proof of Claim, you will not share in the KPMG
Settlement but you nevertheless will be bound by the Order and Final
Judgment of the Court.

Further information may be obtained by contacting the Claims
Administrator.

By Order of the United States District Court for the District of
Connecticut.