THE GUARANTEE COMPANY OF NORTH AMERICA ANNOUNCEMENT

THE GUARANTEE COMPANY OF NORTH AMERICA recognizes, as the insurance industry continues to evolve, that a strategic change in our organizational structure is important. After a careful review of our business lines and present service levels we have determined that changes are necessary for the accomplishment of our strategic plans. These strategic plans include profitable business development, growth in certain geographic areas, products enhancements, technological upgrades and enhancement of performance standards in order to meet broker expectations. From our solid financial base and sound underwriting practices we expect our company to grow while responding to the business opportunities which will align ourselves even closer to our broker partners.

Therefore I am pleased to announce the following new regional, national and branch appointments which take effect immediately:

Richard Pouliot, VP Eastern Canada

Responsible for all operations in Ontario, Quebec and Atlantic Canada. This encompasses the branch network of offices: Toronto, Woodstock, Montreal, Quebec City and Halifax.

Frank Faieta, VP National Claims

National responsibilities for all claims in all lines.

Dean Bast, VP National Guarantee GOLD^®

Responsible for the development and expansion of Guarantee GOLD^® in both Canada and the United States. Dean maintains his role as VP Marketing and Business Development for the Company as well.

Ron Burns, VP National Personal Lines Underwriting Standards

Responsible for the overall underwriting standards in both Regular and GOLD Personal Lines.

Ron Burns, VP National Standard Personal Lines

Responsible for the development and expansion of the Regular Personal Lines in Ontario.

Dick Longland, VP National Commercial & Developer Surety

Responsible for the development and expansion of Commercial Surety and Developer Surety across Canada. Dick maintains his overall responsibilities for Surety within the Central and Atlantic Region.

Paul Hollingworth, VP Contract Surety, Central & Atlantic Region

Responsible for the underwriting activities for Contract Surety in the Central and Atlantic Region.

Daniel Richard, VP Personal Lines, Quebec

Responsible for the development and expansion of Guarantee GOLD^® in the Quebec Region.

Max Fratarcangeli, Manager Woodstock Surety, Woodstock

Responsible for the underwriting, management and development of Surety in the Woodstock branch.

I am confident that these appointments will further develop our business relationships and contribute to our mutual success.

Robert Dempsey

President and Chief Operating Officer