Fitch Lowers Fidelity& Guaranty Life Insurance's IFS to 'A-'

June 2, 2004

CHICAGO - Fitch Ratings has downgraded the insurer financial strength rating of Fidelity and Guaranty Life Insurance Company (F&G Life) to 'A-' from 'A'. The rating action follows today's downgrade of the long-term ratings of Old Mutual plc (Old Mutual), its U.K. parent. Fitch's rating of F&G Life is based on the strength and support of Old Mutual. The action on Old Mutual was due to reduced financial flexibility within its South African operations and the negative impact of banking subsidiary Nedcor. See today's press release on Old Mutual for further details.

F&G Life focuses on manufacturing annuity and life insurance products for brokers, independent agents, and institutional distributors. Its target market is middle-market consumers saving for retirement or seeking protection-oriented products. Source: Fitch Ratings