Enstar Group Limited Announces Exercise of Underwriters’ Over-Allotment Option

    HAMILTON, Bermuda, July 15 /EMWNews-FirstCall/ -- Enstar Group

Limited (Nasdaq: ESGR) today announced it had received notice that the

underwriters of its public offering of 1,200,000 ordinary shares, which

priced on June 26, 2008 and closed on July 1, 2008, have exercised their

option to purchase an additional 172,028 ordinary shares at the offering

price of $87.50 to cover over-allotments. All of the shares will be sold by

Enstar and none of the shares will be sold by Enstar's existing

shareholders. Enstar expects the issuance and delivery of the shares to

occur on July 18, 2008.



    Fox-Pitt Kelton Cochran Caronia Waller (USA) LLC acted as book-running

manager and Dowling & Partners Securities, LLC acted as co-manager of the

offering.



    The shares will be issued pursuant to a registration statement, as

amended, that was filed with the SEC on June 5, 2008. This press release

shall not constitute an offer to sell or a solicitation of an offer to buy

Enstar's ordinary shares. An offering of Enstar's ordinary shares will be

made only by means of a prospectus. The prospectus shall not constitute an

offer to sell or the solicitation of an offer to buy, nor shall there be

any sale of Enstar's ordinary shares in any jurisdiction in which such

offer, solicitation or sale would be unlawful prior to registration or

qualification under the securities laws of any such jurisdiction. Copies of

the prospectus may be obtained from Fox-Pitt Kelton Cochran Caronia Waller

(USA) LLC, 420 Fifth Avenue, New York, New York 10018. These documents are

also filed with the Securities and Exchange Commission and are available at

the SEC's website at http://www.sec.gov.



    Enstar, a Bermuda company, acquires and manages insurance and

reinsurance companies in run-off and provides management, consultancy and

other services to the insurance and reinsurance industry.



    This press release contains certain forward-looking statements within

the meaning of the Private Securities Litigation Reform Act of 1995. These

statements include statements regarding the intent, belief or current

expectations of Enstar and its management team. Prospective investors are

cautioned that any such forward-looking statements are not guarantees of

future performance and involve risks and uncertainties, and that actual

results may differ materially from those projected in the forward-looking

statements as a result of various factors. Important risk factors regarding

Enstar may be found under the heading "Risk Factors" in Enstar's

Registration Statement on Form S-3, as amended on June 26, 2008, and are

incorporated herein by reference. Furthermore, Enstar undertakes no

obligation to update any written or oral forward-looking statements or

publicly announce any updates or revisions to any of the forward-looking

statements contained herein, to reflect any change in its expectations with

regard thereto or any change in events, conditions, circumstances or

assumptions underlying such statements, except as required by law.