CNA Surety Announces Engagement of Financial Advisor and Legal Counsel to the Special Committee

CHICAGO, Nov. 23, 2010 /PRNewswire-FirstCall/ -- CNA Surety Corporation ("CNA Surety" or the "Company") (NYSE: SUR), announced today that the special committee of its Board of Directors has retained Goldman, Sachs & Co. to act as its financial advisor and Latham & Watkins LLP to act as its legal counsel.  These firms will assist in the special committee's consideration of a proposed transaction with CNA Financial Corporation.  Earlier this month, the Company announced that it had formed a special committee of its Board of Directors, composed of the Company's three independent directors, to assess CNA Financial Corporation's proposal to acquire all of the outstanding shares of CNA Surety not owned by CNA Financial Corporation at a price of $22.00 in cash per share.  The special committee members are Philip H. Britt, Anthony S. Cleberg and Robert A. Tinstman.

There can be no assurance that any agreement between CNA Surety and CNA Financial Corporation will be reached or that the proposed transaction, or any other transaction, will be consummated. The special committee does not intend to disclose developments regarding these matters unless and until the special committee determines that there is need to update the market.  

About CNA Surety

CNA Surety Corporation is the largest publicly traded surety company in the country. Through its principal subsidiary, Western Surety Company, CNA Surety provides surety and fidelity bonds in all 50 states through a combined network of approximately 37,000 independent agencies. The Company's Securities and Exchange Commission ("SEC") filings are available at www.sec.gov or visit us at www.cnasurety.com  for a direct link to the SEC website.

CNA is a registered service mark, trade name and domain name of CNA Financial Corporation.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:  The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, product and policy demand and market response risks, the effect of economic conditions, the impact of significant increases in corporate defaults on a national or global basis, the impact of competitive products, policies and pricing, product and policy development, regulatory changes and conditions including underwriting limitations imposed by the U.S. Department of Treasury, rating agency policies and practices, development of claims and the effect on loss reserves, the performance of reinsurance companies under reinsurance contracts with the Company, the cost and availability of reinsurance contracts on reasonable terms, investment portfolio developments and reaction to market conditions, the results of financing efforts, the effect of the Company's accounting policies, the possibility that CNA Surety will not pursue a transaction with CNA Financial Corporation, that CNA Financial Corporation will not pursue a transaction with CNA Surety, or that any such transaction will not be consummated, and other risks detailed in the Company's Securities and Exchange Commission filings.  No assurance can be given that the actual results of operations and financial condition will conform to the forward-looking statements contained herein.

SOURCE CNA Surety Corporation