Scottish Re Postpones Fourth Quarter 2007 Earnings Release and 2007 Form 10-K Filing

Business Wire, March 27, 2008

HAMILTON, Bermuda -- Scottish Re Group Limited (Pink Sheets:SKRRF), or the "Company," announced today that it will be postponing the release of results for the fourth quarter and the filing of its Form 10-K for the year ended December 31, 2007. The Company had previously announced that it expected to report results for the fourth quarter of 2007 after the market closes on Thursday, March 27, 2008 and expected to host an earnings conference call to discuss the fourth quarter and full year results on Friday, March 28, 2008. As a result of the matters described below, the Company will be postponing the earnings release and related earnings conference call to a later date to be announced.

On March 12, 2008, the Company filed a Form 12b-25 with the Securities and Exchange Commission stating that it was postponing the filing of its Annual Report on Form 10-K for the year ended December 31, 2007 beyond the due date and that it intended to file its Form 10-K on or about April 1, 2008 so that the Company could: (i) complete its process of evaluating mark-to-market valuations and other-than-temporary impairments in the carrying value of its available-for-sale securities; (ii) address the accounting and disclosure requirements arising from the Company's recently announced change in strategy; and (iii) allow sufficient time for the Company's independent registered public accounting firm, Ernst & Young LLP, to complete its audit of the Company's consolidated financial statements for the year ended December 31, 2007. The Company has today filed with the Securities and Exchange Commission an amendment to its Form 12b-25 in respect of the matters noted in this release.

In light of continuing deterioration in the credit markets and the resulting further declines in the market value of the Company's investment portfolio subsequent to the fiscal year end, the Company has determined, in consultation with Ernst & Young LLP, that additional work is required to evaluate and conclude on the amount of other-than-temporary impairment charges to be recognized in the consolidated financial statements in accordance with US GAAP.

The Company's determination of other-than-temporary impairments for securities classified as available-for-sale involves a variety of assumptions and estimates and includes assessments of risks and uncertainties associated with general economic conditions as well as specific conditions affecting specific issuers. The Company's other-than-temporary impairment methodology includes an analysis of gross unrealized losses for securities where the estimated fair value has declined significantly below cost or amortized cost. Factors being considered by the Company include the length of time fair value has been below cost, credit worthiness of the issuer, position of the security in the issuer's capital structure, the presence and estimated value of collateral or other credit enhancement, length of time to maturity, interest rates and the Company's intent and ability to hold the security until the market value recovers. Given the concentration of the Company's investment portfolio in residential mortgage-backed securities backed by sub-prime and Alt-A mortgages, the Company has supplemented its assessment of other-than-temporary impairments with specific procedures related to these securities including best estimate cash flow simulations of projected principal losses. For certain investments in beneficial interests in securitized financial assets of less than high quality with contractual cash flows, including asset backed securities, the Company is required to apply Emerging Issues Task Force No. 99-20 Recognition of Interest Income and Impairment on Purchased Beneficial Interests that Continue to Be Held by a Transferor in Securitized Financial Assets ("EITF 99-20") which requires a periodic update of the Company's best estimate cash flows over the life of the security, utilizing assumptions and estimates that a market participant would use. The Company is conducting a detailed review in conjunction with Ernst & Young LLP of its current and past accounting practices for other-than-temporary impairments of lower credit quality structured securities pursuant to the requirements of EITF 99-20. Although the Company is currently unable to specify the amount of other-than-temporary impairments to be included in realized investment losses for the fourth quarter of 2007, the Company believes that the amounts will significantly exceed those previously reported for prior periods.

The time and effort required to complete the foregoing evaluation is proving to be greater than the Company had previously anticipated. The Company is also examining whether this analysis would require a restatement of previously reported financial results. As a result, additional time is required for the Company to complete its work in the foregoing areas and for Ernst & Young LLP to complete its audit procedures of the Company's consolidated financial statements. Consequently, the Company will be unable to file its Form 10-K for the year ended December 31, 2007 with the Securities and Exchange Commission by April 1, 2008. The Company is diligently working on completing the Form 10-K but is unable to specify at this time when it will be in a position to make the filing.