Milberg Weiss Files Class Action Suit Against Mutual Risk Management Ltd

Business Wire, June 7, 2002

Business Editors/Financial Analysts

SAN DIEGO--(BUSINESS WIRE)--June 7, 2002

Milberg Weiss (http://www.milberg.com/cases/mutualrisk/) today announced that a class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of Mutual Risk Management Ltd. ("Mutual Risk") (NYSE:MM; Non NASDAQ OTC:MLRMF) publicly traded securities during the period between February 16, 2000 and April 2, 2002 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@milberg.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.milberg.com/cases/mutualrisk/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Mutual Risk and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, Mutual Risk and its most senior officers and directors disseminated materially false financial statements for each of Mutual Risk's interim quarters during that period and for the years ended December 31, 2000 and 2001, which materially overstated the Company's cumulative revenues and its net income. Defendants also made a series of other materially false and misleading statements about Mutual Risk and its financial condition and performance. As a result of the materially false and misleading statements and omissions described herein, Mutual Risk stock was inflated to an all-time high of $23.75 per share.

Mutual Risk also represented in each of its quarterly and annual filings with the SEC that the financial statements included therein had "been prepared in conformity with generally accepted accounting principles" and "reflected all adjustments necessary for a fair presentation of results for such periods." In reality, each of Mutual Risk's financial statements violated GAAP by understating reserves for potential claims. The financial results included in Mutual Risk's SEC filings during the Class Period were thereby rendered materially false and misleading.

Then, on April 2, 2002, the Company admitted that even its disastrous Q4 2001 results (announced February 19, 2002) were not accurate, putting the Company's shares into another "free fall," trading at just pennies per share following the April 2, 2002 admission.

Plaintiff seeks to recover damages on behalf of all purchasers of Mutual Risk publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss website (http://www.milberg.com) has more information about the firm.