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CNA
For All The Commitments You Make (R)

--------------------------------------------------------------------------------
NEWS

                                                          FOR IMMEDIATE RELEASE

MURPHY ANNOUNCES RETIREMENT: MCGAVICK AND CONWAY PROMOTED AT CNA

(Chicago)  7/24/97 - Carolyn L. Murphy,  senior vice president and head of CNA's
Commercial Operations, has announced her retirement, effective Oct. 1, 1997.

Murphy  has been  with CNA for 20  years  and has  served  as  president  of the
Commercial  Operations  Department  since  May  1995,  when  it was  created  in
conjunction  with  the  merger  of CNA  and  The  Continental  Corporation.  She
previously was senior vice president and chief operating  officer of CNA's Field
Operations Department for 12 years.

Murphy  helped grow the  commercial  insurance  area into CNA's  largest line of
business, with revenues of nearly $5.6 billion last year.

"Carolyn was  instrumental in providing the leadership to build CNA's commercial
insurance business into what it is today - the largest and best in the country,"
said  CNA  Chairman  and  CEO  Dennis  Chookaszian.  "Her  understanding  of the
importance of the  partnership  between the company and its  distribution  force
helped to build the High  Performance  Agency (HPA)  program into the  insurance
industry's premiere example of agency-company partnership."

Chookaszian  said that the growth of CNA's  Commercial  Operations  business has
resulted in the development of two distinct  businesses - Commercial  Insurance,
which serves  companies with premiums up to $1 million a year for their combined
insurance needs, and Risk Management,  which supplies risk transfer products and
support services to the top 9,500 U.S.-based  enterprises.  Commercial Insurance
had revenues of approximately $4.7 billion last year while Risk Management added
about $900 million in revenues (or $3.1 billion in premium equivalent).

With Murphy's  retirement in October,  Commercial  Insurance and Risk Management
will then become separate  operating  departments of CNA,  replacing the current
Commercial Operations structure.

Peter P. Conway,  president  of CNA Risk  Management,  and Michael S.  McGavick,
president of CNA Commercial Insurance, will immediately assume additional duties
as senior vice presidents and members of CNA's senior management team.
<PAGE>

Michael W. Kooken,  president of the newly formed CNA UniSource,  a professional
employer organization (PEO), will report to McGavick.

"Carolyn has built a talented group of individuals  and because people like Pete
Conway,  Mike McGavick,  and Mike Kooken are in place,  we are very confident in
continuing the growth of our commercial and risk management  businesses,  " said
Chookaszian.

McGavick  was named to his present  position  in January  1997.  Previously,  he
served  as  executive  vice  president  and  senior  financial  officer  of  the
Commercial Lines Group, Commercial Operations Department,  from January 1996. He
joined  CNA in 1995 as  group  vice  president  of New  Ventures,  a unit of the
Marketing Department,  where he was responsible for assisting the corporation in
various aspects of strategic  planning and reviewing new business  opportunities
as required by CNA's business needs.

Prior to joining CNA, McGavick was director of the Superfund Improvement Project
for  the  American  Insurance  Association  (AIA)  from  1992 to  1995.  In this
position, he was a lead negotiator for the insurance industry with Congress, the
Administration, the environmental community and industrial groups seeking reform
of the  nation's  Superfund  laws.  From  1991 to 1992,  he was a  Seattle-based
partner of the Gallatin Group, a four-office regional public relations firm. His
practice focused on national efforts to improve  environmental laws by providing
clients with strategic counseling and campaign implementation.

McGavick  received a bachelor's  degree in political science from the University
of Washington.

Conway has held his current  position  since July 1993. He previously  served as
senior  vice  president,  Marketing  Department,  from  1992 to  1993,  and vice
president,  from 1990 to 1992.  In 1981,  he was named  head of the CNA  Midwest
Region with responsibility for insurance  operations in 13 states, and held this
position  until 1990.  In 1980, he became vice  president of  property/liability
product  management,  after being  named vice  president  of  property/liability
distribution    in   1978   and   appointed    assistant   vice   president   of
property/liability  product  management  in 1977.  Conway  joined CNA in 1976 as
director of commercial lines marketing.

He has earned the designation of Chartered Property Casualty  Underwriter (CPCU)
and is a member of the  Society  of CPCU.  He also is a member  of the  Advisory
Council of the DePaul University College of Commerce.

Conway graduated from Villanova University.

CNA is one of the world's premier insurance organizations. With 1996 revenues of
$17.0 billion, CNA ranks among the top 10 U.S. insurance groups.

Headquartered  in  Chicago,  CNA is a  leading  multibusiness  insurer,  serving
individuals  and  businesses  with a  broad  range  of  insurance  products  and
insurance-related  services.  CNA products  and  services  are marketed  through
multiple distribution channels,  including independent agents, brokers,  general
agents and direct sales.

In 1997,  CNA observes its centennial  year,  celebrating a century of financial
strength, stability and commitment to customers and business partners.

CNA is the registered service mark and trade name of CNA Financial Corporation.