The PMI Group, Inc. Announces $2 Million Katrina Relief Package; Innovative Package Includes Grant, Five-to-One Employee Matching, and In-Kind Donation of Homes

Business Wire, Sept 19, 2005

WALNUT CREEK, Calif. -- Recognizing that recovering from Hurricane Katrina poses a long-term challenge, The PMI Group, Inc. (PMI) has announced an innovative $2 million disaster relief response package for victims of Hurricane Katrina, including an in-kind donation of approximately $1 million of single family homes. In addition, The PMI Foundation, a non-profit organization founded by The PMI Group, Inc., will make a $500,000 grant to Habitat to Humanity, and will match PMI employee donations in a five-to-one ratio up to a total of $300,000.

"PMI's response plan is based on our strong suits: employee involvement, a close partnership with Habitat for Humanity for building in the Gulf Coast area, and a commitment to putting people in homes," said Roger Haughton, chairman and CEO of The PMI Group, Inc. "We're committed to meeting the long-term challenges of helping hurricane victims rebuild their homes and lives."

The donated single-family homes are located in Houston, TX and other areas with the highest concentrations of evacuees. PMI will work with local charities to identify new owners for the houses. "Operationally, this part of the plan ties in closely to our business approach to the relief efforts," explained Steve Smith, president and chief operating officer of The PMI Group, Inc. "We're working with lenders and borrowers in the regions declared disaster areas to avoid mortgage delinquency and foreclosure, and recognizing the payment relief options offered by Fannie Mae and Freddie Mac, such as suspending or reducing mortgage payments, waiving late fees, and not reporting delinquencies caused by the disaster to credit bureaus. With this program we'll be helping to address the fundamental issue of housing supply as well."

The PMI Foundation will donate $500,000 to Habitat for Humanity over a two-year period to support long-term rebuilding efforts in the areas devastated by Katrina. To put the buying power of the donation in perspective, a contribution of just $5,000 will purchase new floors, wallboard, windows, siding and a front door for a single house. Habitat for Humanity's Disaster Response Team has already begun assessing damage in the affected states.

The PMI Foundation is also offering to match donations by PMI employees five-to-one, up to a total of $300,000. The matching funds will be divided evenly among major charities taking a leadership role in the region, including the American Red Cross, the Salvation Army and the Humane Society. After the December 2004 tsunami devastated Southeast Asia, PMI employees contributed $66,000 to relief efforts, which the foundation also matched five to one. "PMI employees are some of the most dedicated people I've ever seen," said Charles Broom, senior vice president for Human Resources and president of the PMI Foundation. "I know how much they want to help Katrina victims, and we're proud that the PMI Foundation will maximize the impact of their contribution."

Earlier this month, the PMI Foundation donated $50,000 to the American Red Cross.

The PMI Group, Inc.

The PMI Group, Inc. (NYSE:PMI), headquartered in Walnut Creek, CA, is an international provider of credit enhancement products that promote homeownership and facilitate mortgage transactions in the capital markets. Through its wholly owned subsidiaries and unconsolidated strategic investments, the company offers residential mortgage insurance and credit enhancement products domestically and internationally, financial guaranty insurance, and financial guaranty reinsurance. Through its subsidiaries, The PMI Group, Inc. is one of the world's largest providers of private mortgage insurance with operations in the United States, Australia, New Zealand, and the European Union, as well as one of the largest providers of mortgage guaranty reinsurance in Hong Kong. For more information: www.pmigroup.com.

The PMI Foundation

The PMI Foundation is a private nonprofit organization established by The PMI Group, Inc. (NYSE:PMI). Its goal is to foster home ownership and provide access to affordable housing for underserved areas. The PMI Foundation does this by supporting national and local organizations that create housing opportunities and help revitalize neighborhoods in communities throughout the United States and around the world. The PMI Foundation is located in Walnut Creek, CA. For more information: www.pmigroup.com.