Standard & Poor's Announces Change to U.S. Index

NEW YORK, June 3 /PRNewswire/ -- Lorillard Inc. (NYSE: LO) will replace Ambac Financial Group Inc. (NYSE: ABK) in the S&P 500 after the close of trading on Tuesday, June 10. Lorillard is being distributed to the public via a two-tier process involving 1) the retirement of the tracking stock Carolina Group (NYSE: CG), in exchange for which approximately 62% of Lorillard's common stock will be issued, and 2) an offer in which shares of S&P 500 constituent Loews Corp. (NYSE: LTR) can be exchanged for the remaining shares of Lorillard. As of today's close of trading Ambac's market capitalization was roughly $860 million, ranking 500th in the index.

Standard & Poor's will monitor this transaction, and post any relevant updates on its website: www.standardandpoors.com.

Lorillard is a producer and seller of cigarettes, under brand names including Newport, Kent, True, Maverick and Old Gold. Headquartered in Greensboro, NC, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Tobacco Sub-Industry index.

    Following is a summary of the changes:

S&P 500 INDEX - June 10, 2008

COMPANY     GICS ECONOMIC SECTOR     GICS SUB-INDUSTRY

ADDED       Lorillard      Consumer Staples             Tobacco
    DELETED   Ambac Financial     Financials     Property & Casualty Insurance

Additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the companies concerned.

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Standard & Poor's Index Services, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Its family of indices includes the S&P 500, an index with $1.32 trillion invested and $4.91 trillion benchmarked, and the S&P Global 1200, a composite index comprised of seven regional and country headline indices. For more information, please visit www.standardandpoors.com/indices.

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SOURCE Standard & Poor's