MBIA Announces Closing and Funding of $500 Million Investment from Warburg Pincus;...

Wed Jan 30, 2008 8:06pm EST

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MBIA Announces Closing and Funding of $500 Million Investment from Warburg Pincus; David A. Coulter and Kewsong Lee Join Board of Directors; Richard Walker Resigns from Board to Avoid Potential Conflict of Interest

ARMONK, N.Y.--(Business Wire)--MBIA Inc. (NYSE: MBI) today announced the closing and funding of
the sale of 16.1 million shares of its Common Stock at a price of $31
per share for the aggregate amount of $500 million pursuant to its
Investment Agreement with Warburg Pincus. The stock sale is part of
Warburg's previously announced commitment to invest up to $1 billion
in MBIA. In connection with its investment, Warburg has received 16.1
million warrants, as previously described.

   MBIA also said that David A. Coulter, a Warburg Pincus managing
director who leads the firm's Financial Services investment
activities, and Kewsong Lee, a Warburg Pincus managing director and
member of the firm's Executive Management Group, have been appointed
to the MBIA board of directors. Richard Walker, who has been a board
member since September of 2006 and is the General Counsel of Deutsche
Bank, has resigned from MBIA's board of directors effective January
30, 2008 in order to avoid any possible appearance of a potential
conflict of interest in light of the ongoing discussions among the New
York State Superintendent of Insurance, the banking industry and the
monoline financial guarantee insurance industry.

   Commenting on the closing of the Warburg investment commitment,
Gary C. Dunton, MBIA Chairman and CEO, stated, "We have now
strengthened our capital position by $1.5 billion, including the
recently completed $1 billion surplus notes offering, and we intend to
raise additional capital in the coming weeks. Our comprehensive
capital plan, which improves our position by over $2 billion, has been
recognized by Fitch Ratings, which affirmed our Triple-A ratings with
a stable outlook, and by Standard and Poor's Ratings Services, which
affirmed our Triple-A ratings with a negative outlook. We will
continue to work with Moody's Investor Services, which has placed our
ratings on review for possible downgrade, as our capital strengthening
plan progresses. Our accomplishments send a strong message to those
who doubted our determination to act quickly and decisively to defend
our balance sheet. We remain firmly committed to enhancing our
position as a leading provider of bond insurance."

   Mr. Dunton added, "Warburg Pincus has demonstrated that it keeps
its commitments and has a long-term view of value creation. We are
honored to have them as a significant shareholder. Further, I am very
pleased to welcome David Coulter and Kewsong Lee to our board of
directors. Both men bring a wealth of financial services experience
and wisdom to the table, which will prove invaluable as we move
forward with our strategic plan to return MBIA to a top competitive
position with robust financial results."

   Commenting on the resignation of Richard Walker from the MBIA
board, Mr. Dunton said, "We regret losing Richard as a board member,
but understand and appreciate his reasons for resigning. He has served
the shareholders of this company very well during his tenure as a
board member, and we appreciate his valued service to the company."

   "I am proud to have been associated with MBIA, and I would have
liked to continue serving on the board," said Mr. Walker. "I leave
with great affection for all my fellow directors and for the
exceptional MBIA staff. I am confident that this top-flight staff,
with the board's support, will guide MBIA to future success."

   This news release contains forward-looking statements. Important
factors such as general market conditions and the competitive
environment could cause actual results to differ materially from those
projected in these forward-looking statements. Risk factors are
detailed in MBIA's 10K, which is available on MBIA's website,
www.mbia.com. The Company undertakes no obligation to revise or update
any forward-looking statements to reflect changes in events or

   MBIA Inc., through its subsidiaries, is a leading financial
guarantor and provider of specialized financial services. MBIA's
innovative and cost-effective products and services meet the credit
enhancement, financial and investment needs of its public and private
sector clients, domestically and internationally. MBIA Inc.'s
principal operating subsidiary, MBIA Insurance Corporation, has the
following financial strength ratings: Triple-A from Fitch Ratings with
a stable outlook; Triple-A from Standard & Poor's Ratings Services
with a negative outlook; and Triple-A on review for possible downgrade
from Moody's Investors Service. Please visit MBIA's Web site at

MBIA, Media:
Willard Hill, +1-914-765-3860
Elizabeth James, +1-914-765-3889
MBIA, Investor Relations:
Greg Diamond, +1-914-765-3190

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