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RELIANCE ANNOUNCES PUBLIC OFFERING OF COMMON STOCK AND DEBT

 NEW YORK, Nov. 5 /PRNewswire/ -- Reliance Group Holdings, Inc. (NYSE: REL) today announced the simultaneous public offering of 25 million shares of its common stock and $650 million principal amount of debt, pursuant to a registration statement declared effective by the Securities and Exchange Commission.
 The 25 million shares of common stock are being offered to the public at a price of $8 per share. An additional 3.75 million shares are available to cover any over-allotments. At September 30, 1993, Reliance had approximately 86.5 million shares outstanding.
 The debt offering consists of $400 million principal amount of 9 percent senior notes, due 2000; and $250 million principal amount of 9.75 percent senior subordinated debentures, due 2003. Both issues are priced at 100 percent of their principal amount.
 Net proceeds to Reliance from the offerings total $821.5 million (assuming no exercise of the over-allotment option), all of which will be used to redeem existing debt of the company and its subsidiaries, Reliance Group Incorporated and Reliance Financial Services Corporation. Reliance said it intends to leave outstanding the $100 million principal amount of senior reset notes, due 2000, of Reliance Financial Services. All other public debt will be redeemed promptly following the consummation of the offerings.
 Donaldson, Lufkin & Jenrette Securities Corporation is the lead managing underwriter on both the equity and debt offerings. The equity offering is co-managed by Bear, Stearns & Co. Inc.; CS First Boston; Kidder, Peabody & Co. Incorporated; Oppenheimer & Co., Inc. and Furman Selz Incorporated. The debt offering is co-managed by Bear, Stearns & Co. Inc.; BT Securities Corporation; CS First Boston; and Wasserstein Perella Securities, Inc.
 Headquartered in New York City, Reliance's principal operations are in property and casualty insurance and title insurance. Its four principal property and casualty operations are Reliance National, Reliance Insurance, Reliance Reinsurance and Reliance Surety. Its title business consists of Commonwealth Land Title Insurance Company and Transamerica Title Insurance Company. Reliance's revenues totaled $2.76 billion in 1992 and consolidated assets at year-end were $8.19 billion.
 This press release does not constitute an offer to sell or the solicitation of an offer to buy. An offering of these securities will only be made by means of a prospectus, which may be obtained from Donaldson, Lufkin & Jenrette, 140 Broadway, New York, N.Y., 10005.
 -0- 11/5/93
 /CONTACT: Brian T. Martin, Vice President-Communications of Reliance Group Holdings, 212-909-1247/
 (REL)


CO: Reliance Group Holdings, Inc. ST: New York IN: INS SU: OFR

LG-TA -- NY029 -- 1190 11/05/93 11:22 EST
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Publication:PR Newswire
Date:Nov 5, 1993
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