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        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 EXTENDS CASH TENDER OFFER FOR
                 GUARANTY NATIONAL SHARES AT $17.50 PER SHARE;
                         ANNOUNCES REGULATORY APPROVALS


New York, NY, June 4, 1996 -- Orion Capital Corporation (NYSE: OC) today
announced the extension to June 12, 1996 of the Offer to Purchase by Orion and
certain of its subsidiaries of up to 4,600,000 shares of Guaranty National
Corporation common stock (NYSE: GNC) for cash of $17.50 per share. Subject to
the terms and conditions of the Offer, any and all shares validly tendered
will be accepted, subject to proration if  more than 4,600,000 shares of common
stock are validly tendered.         

Orion reported that the applicable waiting period under the Hart-Scott-Rodino
Act has expired. Orion also reported that approval of the acquisition of 
Guaranty National shares by Orion has been obtained in writing from the 
insurance regulatory authorities of the States of Wisconsin and Texas and that 
the authorities of the States of California and Connecticut have orally
advised that such approvals are forthcoming. The Insurance Department of the 
State of Colorado declared the transaction exempt.

Orion also announced that, in light of the decision of a Special Committee of
Guaranty National's Board to make no recommendation to stockholders with
respect to tendering their shares, Orion presently intends to proceed with the
Offer and, if at least 4,600,000 shares are validly tendered and accepted, to
give to Guaranty National certain undertakings with respect to future share 
purchases. As of the close of business on June 3, 1996, 1,544,990 shares of
Guaranty National common stock have been tendered pursuant to the Offer to 
Purchase.

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 49.5% ownership
interest in Guaranty National Corporation.