EVEREST RE ADOPTS SHAREHOLDER RIGHTS PLAN


         LIBERTY CORNER, New Jersey -- September 24, 1998 -- Everest Reinsurance
Holdings,  Inc. (NYSE: RE) announced today that its Board of Directors adopted a
Shareholder  Rights  Plan  designed  to  protect  shareholders  in the  event of
takeover  activity  that  threatens  to deny them full  value for their  Everest
stock. The adoption of the Plan is not in response to any specific proposal.

         To implement the Plan,  the Board declared a dividend  distribution  of
one preferred share purchase right for each outstanding  share of Everest Common
Stock of record on October 8, 1998. Each Right, when  exercisable,  will entitle
the  holder  to  buy  one  one-thousandth  of a  share  of a  series  of  junior
participating  preferred  stock  of  Everest  at  an  exercise  price  of  $155.
Initially,  the Rights will be attached to the Everest  Common Stock and are not
exercisable.  The Rights will become exercisable only in the event that a person
or group acquires 15% or more of Everest Common Stock or makes, or announces its
intention to make, a tender offer for 15% or more of Everest Common Stock.

         If a person or group acquires 15% or more of Everest Common Stock, each
Right will entitle the holder  (other than such person or members of such group)
to purchase,  at the Right's then-current  exercise price, a number of shares of
Everest Common Stock having a market value of twice such price.  In lieu of such
purchases,  the Board has the option of  exchanging  each Right for one share of
Common Stock.  If Everest is acquired in a merger or other business  combination
or Everest  sells 50% or more of its assets,  cash flow or earning power after a
person has acquired 15% or more of Everest Common Stock, each Right will entitle
the holder (other than such person or members of such group) to purchase, at the
Right's  then-current  exercise  price,  a number  of  shares  of the  acquiring
company's  common stock having a market value of twice such price.  Prior to the
acquisition  by a person or group of 15% or more of Everest  Common  Stock,  the
Rights are redeemable for $0.01 per Right.

         The  Company  will  generally  have the  option to redeem the Rights at
$0.01 per Right at any time until the tenth day following the announcement  that
a person or group has  acquired  15% or more of the Everest  Common  Stock.  The
Rights will expire on October 8, 2008.

         Details of the  Everest  Plan will be  described  in  filings  with the
Securities and Exchange Commission.

         Everest   Reinsurance    Holdings,    Inc.   operates    through    the
following   subsidiaries:   Everest   Reinsurance  Company provides  reinsurance
to     property     and     casualty    insurers     both    domestically    and
in    international     markets.     Everest     National    Insurance   Company



provides  property  and  casualty  insurance  to  policyholders  in  the  United
States.  Everest  Indemnity  Insurance  Company is actively  seeking approval to
write excess and surplus lines insurance in the United States. Everest Insurance
Company of Canada provides  property and casualty  insurance to policyholders in
Canada. (Contact: Janet J. Burak, 908-604-3170)








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