Milberg Weiss Announces Its Investigation on Behalf of Certain Investors of Radian Group Inc. -- RDN

Market Wire, September, 2007

Attorney Advertising. The law firm of Milberg Weiss LLP announces that it is investigating possible illegal conduct as alleged in proposed class action lawsuits filed by law firms against Radian Group Inc. ("Radian" or the "Company") (NYSE: RDN) and certain of Radian's officers for violations of the Securities Exchange Act of 1934. The lawsuits are on behalf of shareholders who purchased the publicly traded securities of Radian Group Inc. between January 23, 2007 and July 31, 2007, inclusive (the "Class Period").

Radian operates, through its subsidiaries and affiliates, as a credit enhancement company that provides credit protection products and financial services to mortgage lenders and other financial institutions. One of Radian's principal affiliates is Credit-Based Asset Servicing and Securitization, known as C-BASS. C-BASS is an investor in the credit risk of subprime single-family residential mortgages.

According to the complaints filed in United States District Court for the Eastern District of Pennsylvania, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company's $468 million investment in C-BASS was materially impaired, as C-BASS was experiencing increasing margin calls and C-BASS's investments were declining in value at a significant rate; (ii) that the Company was materially overstating its financial results by failing to properly value its investment in C-BASS and by failing to write-down that investment in a timely fashion; and (iii) as a result of the foregoing, the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") and, therefore, were materially false and misleading.

On July 30, 2007, after the market close, Radian issued a press release announcing its conclusion that the value of its investment in C-BASS has been "materially impaired." The Company further disclosed that its investment in C-BASS consists of approximately $468 million of equity as of June 30, 2007 and an additional $50 million drawn on July 20 and 23, 2007 under a $50 million unsecured credit facility that Radian provides to C-BASS. The Company also represented that, although it had not determined the level of the impairment charge, it "could be Radian's entire investment, less any associated tax benefit." In response to this announcement, the price of Radian common stock declined from $40.20 per share to $33.71 per share on extremely heavy trading volume.

Then, on July 31, 2007, before the market opened, C-BASS issued a press release concerning Radian's announcement of the impairment charge. According to C-BASS, at the beginning of 2007, it had $302 million of liquidity, representing more than 30% of its capital of $926 million. Thereafter, as 2007 progressed, C-BASS received and met $290 million in margin calls from its lenders, leaving it with virtually no liquidity. However, the margin calls kept coming into C-BASS and C-BASS did not have the liquidity to meet them. In response to this announcement, the price of Radian stock further declined from $33.71 per share to $27.51 per share on extremely heavy trading volume.

If you purchased Radian securities during the Class Period of January 23, 2007 and July 31, 2007, you may move the court no later than October 15, 2007 and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss LLP, or other attorneys, to serve as your counsel in this action.

Milberg Weiss LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg Weiss website ( http://www.milbergweiss.com ) for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

Lori G. Feldman
Anita B. Kartalopoulos
Milberg Weiss LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email:  contactus@milbergweiss.com 
Website:  http://www.milbergweiss.com 

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Contact: Lori G. Feldman Anita B. Kartalopoulos Milberg Weiss LLP One Pennsylvania Plaza, 49th Fl. New York, NY 10119-0165 Phone number: (800) 320-5081 Email: contactus@milbergweiss.com Website: http://www.milbergweiss.com