Assured Guaranty Corp. Assists Issuers in $1.8 Billion of Auction-Rate Securities Conversions

Business Wire, May 29, 2008

Securing Lower Interest Rates for Clients

NEW YORK -- Assured Guaranty Corp. ("Assured"), a subsidiary of Assured Guaranty Ltd. (NYSE:AGO), announced today that it is actively working with municipal bond issuers to provide them with options for converting their auction rate securities (ARS) programs into lower cost and less volatile transactions. In the last three months, Assured assisted issuers with over $1.8 billion in ARS conversions. Eleven conversions totaling approximately $1.0 billion in par have closed in 2008 and Assured has an additional 11 conversions in process totaling approximately $826 million.

"Our primary objective is to provide relief to our issuers who have incurred increased financing costs due to disruptions in the auction rate market. Our Risk Management group, working closely with our Public Finance team, facilitated conversions designed to lower interest costs quickly with as little incremental expense as possible," said Bill Hogan, Senior Managing Director, Public Finance. "Assured's insurance provides substantial economic value for both natural fixed rate and variable rate demand note executions due to our triple-A (stable) financial strength ratings and strong investor acceptance for securities guaranteed by Assured."

Assured's most recent completed transactions include a $152 million conversion of the Series 2007 ARS program for Integris Health, Inc. in Oklahoma (underlying ratings of AA-/Aa3). The Series 2007 conversion was completed in conjunction with a new $100 million Series 2008 bond issue that was insured by Assured and structured as a variable rate demand bond. Proceeds from the Series 2008 bonds were utilized to refund ARS that were previously insured by Financial Guaranty Insurance Company.

Assured has completed ARS conversions for several other healthcare providers including Catholic Healthcare West in San Francisco, Meridian Health System in New Jersey, and the Good Shepherd Group in Pennsylvania. Assured is also working with issuers on auction rate conversations in several other sectors including the higher education and transportation markets.

In order to respond to issuers' needs, Assured has expedited its risk management processes to meet notice requirements consistently and without charging issuers additional consent fees. Since Assured has negotiated standard inter-creditor terms with virtually all of the liquidity banks active in the public finance market, it is able to help issuers effect conversions on a timely and efficient basis.

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 (stable) 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.