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Insurance Bureau of Canada to Redefine Canadian CRESTA Zone Boundaries Used to Manage Earthquake Loss Exposure

September 12, 2003

(Oakland, CA) EQECAT, Inc., an ABS Consulting company, has been selected by the Insurance Bureau of Canada (IBC) to participate in a major industry study that will revise and redraw the Canadian CRESTA zone seismic boundaries. EQECAT's WORLDCATenterpriseTM will redefine the Canadian CRESTA zones, which are used by Insurers and Reinsurers around the world to manage and report accumulated catastrophe loss exposure and to set rates. The current CRESTA zone boundaries for Canada were developed years ago prior to the latest seismic, geologic, and soil investigations, and are no longer viewed as most accurately representing areas of common seismic exposure. The revised zones will enable Insurers and Reinsurers to manage their exposure to earthquake losses based on the latest science.

The IBC, acting in partnership with the Institute for Catastrophic Loss Reduction and the Reinsurance Research Council, is managing the project, which is scheduled to be completed later this year. "We researched the available suppliers thoroughly and the EQECAT proposal was superior. EQECAT has a proven track record of successful experience performing similar industry-level projects in other countries, said Paul Kovacs, IBC Senior Vice President.

"We are very pleased to have been selected for this important Canadian project, because it confirms both the excellence of our modeling technology and our capability to successfully manage high profile projects," said Richard Clinton, President of EQECAT. "We have had similar recognition in many other regions, having been selected as the model of choice for the Taiwan earthquake pool, the TCIP insurance pool in Turkey, the California Earthquake Authority and the majority of CAT bonds currently in force," said Clinton. WORLDCATenterprise is a highly refined model that enables insurers to manage global catastrophe exposure, optimize use of capacity and underwrite individual risks more effectively.

EQECAT is a leader in providing risk assessment services to the insurance-linked capital markets, and has participated in transactions totaling in excess of $1.7 billion since 1997. EQECAT has provided the risk assessment for 61% of the property insurance linked securities (based upon USD outstanding as of August 31, 2002), and is a major provider of global catastrophe management software and services focusing on the property insurance industry. ABSG Consulting Inc., marketing under ABS Consulting, provides rational engineering-based solutions that blend state-of-the-art technology with practical loss-control measures and innovative risk-transfer options. Headquartered in Houston, Texas, ABS Consulting is an affiliate of ABS, one of the world's largest providers of classification services to the international marine and offshore industries.