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Superior National Plans
$100 Million Financing


                  CALABASAS, Calif.-- Nov. 13, 1997--Superior National Insurance
Group, Inc., (Nasdaq:SNTL) Thursday announced that its affiliate, Superior
National Capital Trust I, intends to offer $100 million in trust preferred
securities in a private placement with registration rights pursuant to Rule 144A
and Regulation S under the Securities Act of 1933, as amended.

                  The trust preferred securities will not be registered under
the Securities Act upon initial issuance, and may not be sold in the United
States absent registration or an exemption from registration requirements. This
news release shall not constitute an offer to sell or the solicitation of an
offer to buy the trust preferred securities.

                  Net proceeds from the offering will be used to prepay
long-term debt and redeem preferred securities issued by an SNTL affiliate, with
the balance to be used for other corporate purposes, including contributions to
the capital of the company's operating subsidiaries.

                  Superior National Insurance Group is the parent company of
Superior National Insurance Company and Superior Pacific Casualty Company
(formerly The Pacific Rim Assurance Company), specialty workers' compensation
insurers operating in California through branch offices located in Sacramento,
South San Francisco, Fresno, Calabasas, Woodland Hills, Irvine, San Diego, and
in Phoenix, Arizona.

                  CONTACT:          Superior National Insurance Group Inc.
                                    J. Chris Seaman, 818/878-2240