Quanta Capital Holdings Names Industry Veteran Peter Johnson President and CEO; Appointment Signals Ongoing Commitment to Lloyd's and Decision to Pursue Self-Managed Runoff of Quanta's Remaining Insurance Operations

Business Wire, Sept 14, 2006

HAMILTON, Bermuda -- Quanta Capital Holdings Ltd. (NASDAQ: QNTA) today announced that its Board of Directors has named Peter D. Johnson, a veteran insurance executive with extensive experience as a runoff specialist, to be the Company's new President and Chief Executive Officer. Mr. Johnson was the Chairman and CEO of the Home Insurance Company during its run-off from June 1995 to March 2003. He succeeds interim CEO Robert Lippincott III, who will continue as Deputy Chairman and a member of the Executive Committee of the Quanta Board. Quanta's Chairman, James J. Ritchie was named Executive Chairman of the Company.

The Quanta Board made these management moves in support of three separate decisions that form the basis of the Company's strategy moving forward. Quanta will:

--continue to participate in the underwriting activities of the A-rated Lloyd's market by maintaining its investment in Syndicate 4000 and will continue to work toward concluding the transactions contemplated by the previously announced Heads of Agreement with Chaucer Holdings PLC, the specialist Lloyd's insurer, and the senior underwriting team of Syndicate 4000.

--pursue an orderly, self-managed run-off of its remaining insurance and reinsurance operations which, in the Board's view, is the best means for preserving value for shareholders. During this run-off, we will continue to work with our regulators including the Bermuda Monetary Authority.

--pursue the sale of the ESC subsidiary, an environmental consulting company that is not engaged in insurance operations; however, there can be no assurances that such a sale will take place.

Executive Chairman James J. Ritchie said, "After a careful review, Quanta's Board has determined that it is in the best interests of the Company and its shareholders to support the future underwriting operations of Syndicate 4000 while pursuing an orderly, self-managed, run-off of Quanta's remaining insurance and reinsurance businesses. Peter is a specialist in discontinued insurance operations and claims management and has an established track record in this area with industry leaders including Zurich Insurance, Aon and others. Peter's experience includes managing the largest run-off in the history of North American insurers. We welcome him to the helm, and look forward to working together to achieve the best outcome possible for all of our stakeholders."

Mr. Ritchie further stated, "Bob Lippincott has done a great job during his tenure as Interim Chief Executive Officer as he positioned the Company to be successful in its future endeavors. He has brought a seasoned and experienced perspective to the management team. I look forward to continuing to work with Bob through his continued services on our Board of Directors and the Executive Committee."

About Quanta Capital Holdings Ltd.

Quanta Capital Holdings Ltd., a Bermuda holding company, operates its Lloyd's syndicate in London and its environmental consulting business through Environmental Strategies Consulting (ESC) in the United States. The Company is in the process of running off its remaining business lines. The Company maintains offices in Bermuda, the United Kingdom, Ireland and the United States.

The statements contained in this press release may include forward-looking statements within the meaning of the federal securities law, which reflect the Company's current views with respect to future events and financial performance. Statements which include the words "believes," "expects," "intends," "estimates," "projects," "predicts," "assumes," "anticipates," "plans," and "seeks" and comparable terms of a future or forward-looking nature identify forward-looking statements in form for purposes of the U.S. federal securities laws or otherwise. The Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the Private Securities Litigation Reform Act of 1995. As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. These include, but are not limited to, the Company's ability to effectively implement and manage the run-off of its business lines; unfavorable claims experience related to the run-off of the Company's business lines; the effect of a further downgrade by A.M. Best of the Company's financial strength rating, including a default under the Company's credit facility; the ability of the Company to pay dividends to the holders of the series A preferred and common shares; the Company's analysis of its business lines and internal operations and identification of steps it should take to preserve shareholder value; the Company's inability to attract, integrate and retain members of its management team and key employees; implementation of any changes based on the Company's analysis of its business, the run-off of its business or any strategic alternatives, which involves substantial uncertainties and risks that may result in unforeseen expenses and costs; the Company's loss estimates relating to its exposure to Hurricanes Katrina, Rita and Wilma are preliminary and the actual amount of losses may vary significantly from its estimates based on such data; the failure to remedy any weakness found in the Company's evaluations of controls required by Section 404 of the Sarbanes-Oxley Act of 2002; large aggregate exposures in certain lines of business; the failure of any of the loss limitation methods; competition; other rating agency actions; uncertainties in the Company's reserving process; a change in the Company's tax status; acceptance of the Company's products that the Company continues to offer; the availability of reinsurance or retrocessional coverage; changes in accounting policies; changes in general economic conditions; the Company's limited operating history; risks relating to reliance on program managers; the Company's inability to maintain or enter into adequate credit facilities and other factors detailed in the Company's filings with the U.S. Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements to reflect subsequent events or circumstances.