Hicks, Muse, Tate & Furst to Acquire Swett & Crawford, the Largest U.S. Wholesale Insurance Brokerage Firm.

DALLAS -- Hicks, Muse, Tate & Furst Incorporated ("HMTF") today announced the signing of a definitive agreement under which it will acquire Swett & Crawford ("S&C"), the nation's largest wholesale insurance brokerage firm, from S&C's parent company, Aon Corporation. Joining HMTF in the transaction are Banc of America Capital Investors and Emerald Capital Group, Ltd.. Significantly, a number of key S&C employees have made a long-term professional commitment to the company, enabling them to also invest in the transaction alongside HMTF and thereby to own a significant stake in the new Swett & Crawford. The parties expect to complete the transaction, financial terms of which were not disclosed, in 45 to 60 days.

Andrew Rosen, a Partner of HMTF, said: "Over the past two years, and building on our previous and successful investment experience in financial services, we have been quietly but actively exploring investment opportunities in this sector, including the wholesale insurance brokerage industry. We are delighted that, as a result of this process, we will now be acquiring the largest and best franchise in an industry with excellent fundamentals. With our active support of the company's leadership team, which will now have a significant equity stake in the business, we believe Swett & Crawford can build upon its already outstanding competitive position, further grow its specialty underwriting and brokerage activities both organically and strategically, and create significant value," Mr. Rosen said.

David Hartoch, Chairman and Chief Executive Officer of Swett & Crawford, said: "On behalf of all S&C employees, I am excited to be partnering with HMTF to build our business at an exciting time in the history of our company and industry."

Neal Abernathy, Swett & Crawford's President and Chief Operating Officer, said: "We look forward to S&C becoming a standalone company and are already planning several organic growth initiatives. These include expanding our producer base and underwriting capabilities with the active support of HMTF and our other investors."

Credit Suisse First Boston and Deutsche Bank acted as financial advisors to HMTF with regard to the transaction, for which they are also arranging the necessary debt financing. Weil, Gotshal & Manges LLP acted as legal counsel to HMTF in connection with the transaction.

About Swett & Crawford

Founded in 1914, Swett & Crawford is the nation's largest wholesale brokerage insurance firm, acting as an intermediary between retail insurance agents/brokers and surplus lines/specialty insurance carriers that specialize in providing insurance for highly customized policies with unique and hard-to-place risks (non-standard policies). S&C's producers have developed unique expertise in more than thirty insurance categories such as agriculture, biotechnology, builder's risks, energy, fraternities, medical malpractice, nursing homes, and casinos & entertainment. S&C sources its business from more than 14,000 retail agents/brokers across the United States, and has access to all major specialty and standard markets and insurance companies that underwrite customized policies.

About Banc of America Capital Investors

With more than $2 billion under management since its founding in 1993, BACI has invested in over 100 companies across numerous industry segments. BACI is an active investor in the financial services segment, with past and current investments including Acordia, Inc., Affiliated Managers Group, Inc., The Statesman Group, The Republic Group, Wilton Re Holdings Limited, and Fidelity National Information Services, Inc. For more information on BACI, please visit the group's website: www.bacapitalinvestors.com

About Emerald Capital Group, Ltd.

Emerald Capital Group, Ltd., a private consulting and investment firm that specializes in the insurance industry, has been advisor/investor in a number of insurance transactions including Life Partners Group, Inc., PennCorp Financial Group, Inc., Seguros Comercial America, Universal American Financial Corp, Acordia, Republic Group, Ensera and American Independent Companies, Inc.

About Hicks, Muse, Tate & Furst Incorporated

Based in Dallas, Texas, Hicks, Muse, Tate & Furst is a private equity firm focused on the middle market with an investment strategy that leverages its sector expertise to acquire, change and build strategically relevant businesses. HMTF is currently investing and managing a $1.6 billion fund. Previous HMTF investments in the financial services area include Life Partners Group, Inc., Seguros Comercial America, and CorpGroup (Cayman) Limited.