From:  Vincent T. Papa             Dawn Dover
                (212) 332-8080              Robert Siegfried
                Jeanne Hotchkiss            Kekst and Company
                (860) 674-6754              (212) 593-2655
         
         FOR IMMEDIATE RELEASE
         
         
                          ORION CAPITAL CASH TENDER OFFER 
                    FOR GUARANTY NATIONAL SHARES OVERSUBSCRIBED
         
         
         New York, New York, July 2, 1996 -- Orion Capital Corporation 
         (NYSE:  OC), today announced that it has successfully completed 
         its tender offer to purchase 4,600,000 shares of Guaranty National 
         Corporation (NYSE:  GNC) Common Stock, including any associated 
         stock purchase rights, for $18.50 per share.  The tender offer 
         expired at 12:00 midnight, New York City time on July 1, 1996.  
         
         Based on its preliminary tabulation, the Depositary for the Offer 
         has informed Orion that approximately 7,036,092 shares of Guaranty 
         National Corporation were tendered and not withdrawn pursuant to 
         the Offer (including 2,634,346 shares tendered by means of notices 
         of guaranteed delivery).  Orion has accepted for payment, on a pro 
         rata basis, 4,600,000 of the shares validly tendered prior to the 
         expiration of the Offer, which together with the 7,409,942 shares 
         currently owned by certain of Orion's wholly-owned subsidiaries, 
         represents approximately 80.3% of the shares of Guaranty National 
         Corporation currently outstanding.  The preliminary proration 
         factor is 65.3772%.  The final proration factor will be determined 
         after the precise number of validly tendered shares is calculated.  
         Payment for shares accepted for payment pursuant to the Offer will 
         be made when the final proration factor is determined.  
         
         Orion Capital Corporation is engaged in the specialty property and 
         casualty insurance business through wholly-owned subsidiaries 
         which include EBI Companies, DPIC Companies, Connecticut Specialty 
         Insurance Group, SecurityRe Companies and Wm. H. McGee & Co. Inc., 
         as well as through its ownership interest in Guaranty National 
         Corporation.  
         
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