Arch Capital Group Ltd. Prices $300 Million Senior Notes Offering

[Arch Capital Group via BizWire]

HAMILTON, Bermuda--(BUSINESS WIRE)--April 30, 2004--Arch Capital
Group Ltd. (NASDAQ: ACGL) announced today the pricing of a public
offering of $300,000,000 principal amount of 7.35% Senior Notes due
2034. The notes will initially be offered by the underwriters at a
price of 99.689% of their principal amount, providing an effective
yield of 7.45%. The Company expects to use the net proceeds from the
sale of the notes principally to repay all amounts outstanding under
its existing credit facility, to support the underwriting activities
of its wholly owned insurance and reinsurance subsidiaries and for
other general corporate purposes.
The offering is being led by Goldman, Sachs & Co. and JPMorgan as
joint bookrunners. Credit Suisse First Boston, Merrill Lynch & Co.,
Banc of America Securities LLC and Wachovia Securities are co-managers
for the offering.

Arch Capital Group Ltd., a Bermuda-based company with over $2.3
billion in capital, including the proceeds of the offering and related
uses thereof, provides insurance and reinsurance on a worldwide basis
through its wholly owned subsidiaries.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state in which the offer, solicitation, or sale
would be unlawful prior to the registration or qualification under the
securities laws of any such state. A shelf registration statement
relating to the securities that the Company plans to sell has
previously been filed with, and declared effective by the Securities
and Exchange Commission. Any offer, if at all, will be made only by
means of a prospectus, including a prospectus supplement, forming a
part of the effective registration statement.
When available, copies of the prospectus relating to this offering
may be obtained from Goldman, Sachs & Co., Prospectus Department, 85
Broad Street, New York, NY 10004, telephone: 212-902-1171 and
JPMorgan, High Grade Syndicate Desk, 270 Park Avenue, New York, NY
10017, telephone: 212-834-4533.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward-looking statements. This release or any
other written or oral statements made by or on behalf of Arch Capital
Group Ltd. and its subsidiaries (collectively, the "Company") may
include forward-looking statements which reflect the Company's current
views with respect to future events and financial performance.
Forward-looking statements involve the Company's current assessment of
risks and uncertainties, which may cause actual events and results and
prospects to differ materially from those expressed or implied in
these statements. Certain information regarding such risks and
uncertainties is set forth in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.