Malcolm Basing to Join Primus as Chairman, Primus U.K.; Company Expands Presence into Europe with Opening of New London Office

Mr. Basing, whose appointment is effective October 17th, willreport to Thomas Jasper, Primus Guaranty's Chief Executive Officer,and will serve as a member of Primus's management committee.

"Primus operates in a dynamic, global marketplace," said Mr.Jasper. "Establishing a physical presence in Europe strengthens ourability to execute our focused growth strategy, which includes furtherexpanding our core business of selling credit protection, andleveraging our core competencies to capture additional opportunitiesin related areas such as asset management."

"Malcolm's experience and talent make him the ideal person to helpshape and drive our efforts in Europe. He brings to Primus a wealth ofexpertise and an excellent track record in the international capitalmarkets and swaps businesses. He will be a great asset to our companyand a strong addition to our management team," Mr. Jasper said.

"It is an exciting time to be joining Primus," said Mr. Basing."The credit swaps market continues to grow and innovate, London is akey center of activity, and Primus has established a leadershipposition in its business. I welcome the opportunity to work with Tomand the Primus team to further leverage the company's market positionand help to continue to drive its success."

Over the course of his career, Mr. Basing has served in a range ofsenior management, marketing and trading positions at leading globalfinancial institutions in the U.K. and abroad. He joined Swiss BankCorporation in 1984 and for eight years headed its global swapsbusiness. He later served as Chief Executive Officer, SBC Canada.Following SBC's merger with UBS, Mr. Basing was Global Head, UBSWarburg Finance Group and subsequently was appointed Chief OperatingOfficer, UBS Americas.

From 1992-1993, Mr. Basing served as Chairman of the InternationalSwaps and Derivatives Association (ISDA), the global trade associationfor the privately negotiated derivatives industry; he also served for3 years as a director of the association.

Mr. Basing currently serves as Development Director for the CityDisputes Panel in London, a charity set up to help financialinstitutions resolve disputes without resorting to litigation. Hereceived an MA from Sidney Sussex College, Cambridge.

About Primus Guaranty, Ltd.

Primus Guaranty, Ltd., through its principal operating subsidiary,Primus Financial Products, LLC, offers protection against the risk ofdefault on corporate and sovereign obligations. Primus Financialassumes these risks through the sale of credit swaps to dealers, banksand portfolio managers. As a swap counterparty, Primus Financial israted Aaa by Moody's Investor Service, Inc. and AAA by Standard &Poor's Rating Services. Another subsidiary of Primus Guaranty, PrimusAsset Management, Inc., manages the credit swap portfolio of PrimusFinancial, and provides credit swap portfolio management services tothird parties.

Safe Harbor Statement

Some of the statements included in this press release,particularly those anticipating future financial performance, businessprospects, growth and operating strategies and similar matters, areforward-looking statements that involve a number of risks anduncertainties. For those statements, we claim the protection of thesafe harbor for forward-looking statements contained in the PrivateSecurities Litigation Reform Act of 1995.