Pxre To Redeem All Preferred Shares And Related Depositary Shares On May 1, 1995; Correction Of Dividend Record Date For Quarterly Cash Dividends On Preferred Shares

Business Wire, March 15, 1995

NEW YORK--(BUSINESS WIRE)--March 15, 1995--PXRE Corporation, as previously announced, has exercised its option to redeem PXRE's cumulative convertible preferred stock (and the related depositary shares) on May 1, 1995.

The redemption price will be $26.40 per depositary share.

Also, the Company today announced a correction to the record date as previously announced for a dividend on its cumulative convertible preferred stock payable May 1, 1995. The dividend of $.50 per depositary share, previously announced as payable to stockholders of record as of Saturday, April 8, 1995, is payable to stockholders of record as of Monday, April 10, 1995.

The current conversion price for the preferred shares is equal to $12.29, and as a result of the operation of the conversion formula, will result in the issuance of approximately two shares of common stock for each depositary share. No fractional shares or scrip representing fractional shares of common stock will be issued, but holders exercising their right to convert will receive cash in lieu of any fractional interest in a share of common stock (computed to the nearest cent). At the close of business on May 1, 1995, dividends in respect of the depositary shares will cease to accrue and the conversion rights in respect of such shares will terminate.

The place for surrender of depositary shares for redemption or for conversion is:

American Stock Transfer and Trust Company

40 Wall Street

New York, NY 10004

Attention: George Karfunkel

Executive Vice President

Information as to the requirements for conversion can be obtained from Mr. Karfunkel at the above address, telephone number (212) 936-5100.

Holders of depositary shares evidencing shares of the Company's cumulative convertible preferred stock should be aware that if they convert prior to the close of business on April 10, 1995, the record date for the payment of the quarterly dividend on May 1, 1995, they will not be entitled to such dividend. However, if they convert after the record date of April 10, 1995, and prior to the close of business on May 1, 1995, they will receive the dividend. Shareholders additionally must consider whether or not to convert their holdings of depositary shares or to continue to hold such shares for redemption on May 1, 1995, and are urged to discuss these matters with their financial advisers. At current prices for the common stock, each depositary share will be entitled to common stock and cash for any fractional interest in common stock totaling approximately $47.04 per depositary share on the assumption that the market value of the common stock is $23.125 per share.

PXRE provides reinsurance products and services to a national and international marketplace, with principal emphasis on commercial and personal property risks. The Company's common shares and preferred stock depositary shares trade on the Nasdaq National Market System under the symbols PXRE and PXREZ, respectively.

CONTACT: PXRE Corporation, New York

Sanford M. Kimmel, 212/837-9520