SKP Merrill Lynch

NEW YORK, June 8 /PRNewswire/ -- The Stilwell Group announced today its receipt of a letter from the Delaware Department of Insurance rescinding the Department's June 2nd letter concerning a subsidiary of SCPIE Holdings Inc. (NYSE:SKP) which had requested that the Group file a Form A in connection with its ongoing proxy solicitation. The Department confirmed Stilwell's belief that its disclaimer may only be disallowed after notice and an opportunity to be heard and noted that the June 2nd letter was sent by an employee without the knowledge or approval of the employee's supervisors. A copy of the letter follows. Mr. Stilwell noted: "The desperate attempt by SCPIE management failed. I look forward to the owners casting their votes for three directors on June 22nd." Matthew Denn [Seal of Delaware Department of Insurance Insurance Commissioner Insurance Commissioner] 841 Silver Lake Blvd. Dover, DE 19904-2465 (302) 674-7300 (302) 739-5280 fax June 7, 2006 VIA ELECTRONIC AND REGULAR MAIL Mr. Neil B. Glassman The Bayard Firm 222 Delaware Avenue, 9th Floor Wilmington, DE 19801 Dear Mr. Glassman: I am responding to your letter of June 7, 2006. The letter sent to Stilwell Value Partners III, L.P. by a Department of Insurance employee on June 2, 2006 was procedurally defective, and was sent from the Department without the knowledge or approval of the employee's supervisors. Accordingly, the letter of June 2, 2006 is hereby rescinded. The appropriate response from the Department to the receipt of Stilwell's disclaimer was, upon request of a party in interest, to conduct a hearing and make appropriate findings of fact and conclusions of law. Only after such a hearing can the Department reach any conclusion as to whether the disclaimer should be disallowed. The Department will promptly schedule a hearing, consistent with Delaware statute, upon the request of any party in interest. I regret any inconvenience or confusion caused by this failure by the Department's employee to follow statutory hearing procedures. Sincerely, /s/ Michael L. Vild Michael L. Vild Deputy Insurance Commissioner cc: The Honorable Matthew P. Denn Glenn C. Kenton (by facsimile) DATASOURCE: The Stilwell Group CONTACT: Mr. Joseph Stilwell of the Stilwell Group, +1-212-269-5800

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