Surplus Noteholders of Lumbermens Mutual Casualty Company -Kemper Insurance Companies- Form Ad Hoc Committee

Business Wire, March 27, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--March 27, 2003

Holders of all three series of surplus notes issued by Lumbermens Mutual Casualty Company ("Lumbermens"), and certain related trust certificates, have formed an ad hoc committee (the "Committee") to evaluate Lumbermens' recently announced tender offer and consent solicitation (the "Offer") related to the surplus notes.

The Committee currently consists of American United Life Insurance Company, Calvert Group, MacKay Shields LLC and Elliott Management Corporation who hold in the aggregate in excess of $330 million out of $700 million of the principal amount of surplus notes issued by Lumbermens. The Committee members hold more than 50 percent of the aggregate principal amount of surplus notes in at least one series.

The Committee intends to enter into discussions with Lumbermens concerning the terms of the Offer. In this connection, the Committee has retained the law firm of King & Spalding LLP to represent the Committee.

Other holders of surplus notes who are interested in joining the Committee or have questions regarding the formation thereof, should contact Robert Nisi at MacKay Shields LLC at 212-230-3925.