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Contact:  Jeanne Hotchkiss            Dawn W. Dover/      Michael Pautler
          Orion Capital Corporation   Mark Semer          Guaranty National Corporation
          (860) 674-6754              Kekst & Company     (305) 754-8701
                                      437 Madison Avenue
                                      (212) 593-2655



FOR IMMEDIATE RELEASE


                    ORION CAPITAL CORPORATION COMMENCES CASH
                  TENDER OFFER FOR SHARES OF GUARANTY NATIONAL


New York, New York, November 5, 1997 -- Orion Capital Corporation (NYSE: OC)
today announced commencement of a cash tender offer at a price of $36.00 per
share net to the seller for all outstanding shares of the common stock of
Guaranty National Corporation not beneficially owned by Orion. The tender offer
expires at midnight on December 4, 1997, unless extended. Orion Capital
currently owns through its subsidiaries approximately 80.5% of the outstanding
common stock of Guaranty National. The tender offer is being made pursuant to a
merger agreement entered into by Orion and Guaranty and will be followed by the
merger of Guaranty with and into a wholly-owned subsidiary of Orion.
Shareholders will receive $36.00 in cash per share in the merger.

The tender offer is conditioned on, among other things, at least 50.01% of the
outstanding shares of Guaranty National common stock not held by Orion or its
subsidiaries being validly tendered and not withdrawn prior to the expiration
date. The terms and conditions of the offer are set forth in tender offer
materials that will be filed today with the Securities and Exchange Commission,
and mailed to Guaranty National Corporation shareholders.

The Dealer Manager for the offer is Donaldson, Lufkin & Jenrette Securities
Corporation.

Guaranty National is a Colorado-based property and casualty insurance holding
company with operating subsidiaries which write specialty commercial and private
passenger automobile insurance, as well as collateral protection and other
commercial coverages. Guaranty National is a leading provider of nonstandard
personal automobile insurance written through independent agents.

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 80.5% ownership
interest in Guaranty National Corporation.