Securitizability.com

New York, June 24, 2003 – XL Capital Assurance Inc. (XLCA) announced today that it has issued a triple-A rated financial guarantee in connection with a $500 million rental fleet securitization for Avis Rent A Car System, Inc. (Avis), one of the largest car rental brands in the world, based on total revenue and number of rental locations, and an indirect wholly owned subsidiary of Cendant Corporation.

The financing, AESOP Funding II LLC, Series 2003-4, consists of four tranches, three floating-rate and one fixed-rate, of Rental Car Asset-Backed Notes. Proceeds will fund the acquisition and financing of vehicles for Avis’s rental fleet operations in the United States. The transaction, all four tranches of which were over-subscribed, was privately placed under Rule 144A by co-managers Banc of America Securities LLC and Barclays Capital.

“This transaction was very successful,” said Duncan Cocroft, Executive Vice President and Treasurer of Cendant Corp. “We are pleased to begin a relationship with XLCA, which meets our goal of expanding our sources of triple-A rated financial guarantee insurance.”

“We welcome XLCA's participation in the AESOP program. Demand across all tranches was strong showing the market's receptivity to the XLCA name for this issuer,” said Michael Wade, Managing Director and head of ABS at Barclays Capital.

Richard G. Pfaltzgraff, XLCA Managing Director and head of the Commercial Asset Securitization Group, said, “This financing, which was over-subscribed, received a strong reception in the marketplace. XLCA looks forward to a long-term relationship with Avis and Cendant.”

XLCA, rated triple-A by Moody’s Investors Service, Standard & Poor’s Ratings Services and Fitch Ratings, is a New York-domiciled financial guarantee insurer that specializes in commercial and consumer asset securitization, structured funds, power & utilities, global infrastructure, future flow securitization, U.S. public finance, and deposit insurance. XLCA is an indirect, wholly owned subsidiary of XL Capital Ltd (NYSE: XL) which, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis.

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XLCA GUARANTEES $500 MILLION FINANCING FOR AVIS RENT A CAR