Montpelier Re Holdings Notes Sale of Shares

Bermuda-based Montpelier Re Holdings Ltd. announced that on March 7, certain of its founding shareholders sold an aggregate of 3,704,924 common shares of the company under the Form S-3 shelf registration statement which was declared effective on Feb. 23, 2004. Goldman Sachs is acting as the sole manager for the offering.

The selling shareholders are Cypress Associates II (Cayman) L.P. and entities associated with it and DLJMB Overseas Partners III C.V. and associated funds.

Montpelier will not sell any common shares in the offering. The selling shareholders will receive all of the net proceeds.