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NEWS

                                                           FOR IMMEDIATE RELEASE

CNA NAMES HENGESBAUGH CHIEF OPERATING OFFICER

Taylor To Head CNA  Specialty  Operations  And Wilson To Head CNA Financial
Insurance

(Chicago)  Feb.  4, 1998 -- CNA  Chairman  and Chief  Executive  Officer  Dennis
Chookaszian  today announced the appointment of Bernard "Bernie"  Hengesbaugh to
the newly  created  position of executive  vice  president  and chief  operating
officer for the Chicago-based insurance organization.

Hengesbaugh will have  responsibility  for overall operating  performance of the
company's eight operating departments and 30 strategic business units.

"For more than 100 years, CNA has been built on financial  strength,  stability,
and commitment,"  said  Chookaszian.  "While our current  operating results have
been good and on par with the  industry,  as we begin our second  century we are
committed to taking the steps necessary to become a world-class  organization at
all levels. The creation of this new position is a key initiative in our overall
strategy."

Hengesbaugh has been president and chief  operating  officer for CNA's Specialty
Operations  Department since 1990. In that position, he has overseen seven major
businesses at CNA  including CNA  HealthPro,  CNA Financial  Insurance,  CNA Pro
(professional   liability),   CNA  E&S  (excess  &  select),   CNA  Agriculture,
Entertainment Coalition and Hedge Financial Products.

"I will work daily with the  department  heads and the business  units to ensure
that we sharpen  our focus on  strategic  issues,  meet our goals,  improve  our
market position, and enhance shareholder value," said Hengesbaugh.

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Replacing  Hengesbaugh  as  president  and  chief  operating  officer  of  CNA's
Specialty Operations  Department is Thomas Taylor. He has served as president of
CNA Financial Insurance since 1992.

Peter Wilson,  senior vice  president of corporate  governance for CNA Financial
Insurance  since 1992,  has been named to replace  Taylor as president and chief
operating officer for that business.

Hengesbaugh  joined CNA in 1980 as vice  president of the  Corporate  Accounting
Division in the Financial Services Department.  and was named vice president and
controller,  Field Operations  Department,  in 1984. During that time, his field
responsibilities were expanded to include the individual life and personal lines
processing centers and individual health operations.

Prior to joining CNA, he was a partner with Deloitte & Touche  (formerly  Touche
Ross & Co.). Hengesbaugh is a Certified Public Accountant and is a member of the
American Institute of Certified Public  Accountants.  He is also a member of the
board of  directors  of the Joint  Commission  on  Accreditation  of  Healthcare
Organizations.

He earned a master's degree in business  administration  from Indiana University
and a bachelor of science degree from St. Joseph's College.

Taylor  joined CNA in 1992 as president  of the  Financial  Insurance  Division.
Before joining CNA, he held  positions in actuarial,  claims,  underwriting  and
reinsurance management with Chubb, AIG and USAA. He received a bachelor's degree
in economics from Texas A&M University.

Prior to joining CNA,  Wilson was with the American  International  Group for 10
years, managing its commercial D&O portfolio. He received a bachelor's degree in
economics from Syracuse University.

CNA is one of the world's premier insurance organizations, ranking among the top
10 U.S. insurance groups. Since 1897, CNA has built on a foundation of financial
strength, stability and commitment to customers and business partners.

CNA is a registered service mark name of CNA Financial Corporation.
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