Assured Guaranty Corp. Issues Policies and Commitments on $750 Million in U.S. Public Finance Transactions

Business Wire, July 28, 2008

NEW YORK -- Assured Guaranty Corp. ("Assured" or the "Company"), the triple-A rated financial guaranty subsidiary of Assured Guaranty Ltd. (NYSE:AGO), announced today that it had closed 14 U.S. public finance transactions totaling over $650 million in par during the week of July 21, 2008. In addition, Assured was selected last week to insure ten transactions that were sold in the competitive market, totaling just under $100 million in par.

"The activity of the past week demonstrates the value that Assured provides to municipal issuers and investors, despite concerns raised in the public finance market last week due to rating agency actions," noted Bill Hogan, Senior Managing Director of the Assured's Public Finance Group. "These recently-insured transactions demonstrate our ability to provide issuers with interest cost savings and also to provide investors with enhanced value in a difficult market environment. Our transaction activity last week was across a broad range of public finance issuers including school districts, water, sewer and electric utilities and private institutions for higher education, with transaction sizes ranging from $6 million to $160 million."

Included among last week's closed transactions was a $115.0 million bond issued by the Dormitory Authority of the State of New York on behalf of Fordham University, an independent, not-for-profit university with campuses in the Bronx, Manhattan and Westchester County, New York. The fixed rate bonds will finance, among other projects, the construction of a 450-room residential dormitory facility. Other deals that utilized Assured's insurance policies last week include the City of Fresno, California's $160 million water and sewer revenue bonds, the Northern California Power Agency's $120 million Hydro One revenue bonds and the St. Tammany Parish (Louisiana) School District's $60 million general obligation bonds.

"We are pleased by the confidence exhibited by public finance investors and issuers in Assured's financial strength and credit profile," commented Mike Schozer, President of Assured Guaranty Corp. "As noted in recent press releases by all three rating agencies, our capital position exceeds the Aaa Moody's capital criteria as well as the AAA capital requirements of both Standard and Poor's and Fitch Ratings for the financial guaranty industry."

Assured Guaranty Corp. is a leading provider of financial guaranty insurance in the U.S. and international public finance, structured finance and mortgage-backed securities markets. Assured Guaranty Corp. is rated triple-A by the three leading rating agencies and is licensed in all 50 states, the District of Columbia and Puerto Rico.

Assured Guaranty Ltd. is a Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, structured finance and mortgage markets. More information can be found at www.assuredguaranty.com.

Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. For example, the Company's forward-looking statements, including its statements regarding the expansion of the consumer and mortgage-backed securities business, could be affected by a significant reduction in the amount of reinsurance ceded by one or more of our principal ceding companies, rating agency action such as a ratings downgrade, difficulties with the execution of the Company's business strategy, contract cancellations, developments in the world's financial and capital markets, more severe or frequent losses associated with products affecting the adequacy of the Company's loss reserve, changes in regulation or tax laws, governmental actions, natural catastrophes, the Company's dependence on customers, decreased demand or increased competition, loss of key personnel, technological developments, the effects of mergers, acquisitions and divestitures, changes in accounting policies or practices, changes in general economic conditions, other risks and uncertainties that have not been identified at this time, management's response to these factors, and other risk factors identified in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.