Assured Guaranty Ltd. Announces Agreement to Reinsure Approximately $13 Billion of...

Assured Guaranty Ltd. Announces Agreement to Reinsure Approximately $13 Billion of CIFG Assurance North America, Inc.'s U.S. Public Finance Business

HAMILTON, Bermuda--(Business Wire)--
Assured Guaranty Ltd. (NYSE:AGO) announced today that its triple-A
rated financial guaranty subsidiary Assured Guaranty Corp. ("Assured")
has entered into a definitive agreement with CIFG Assurance North
America, Inc. ("CIFG NA") under which Assured will assume via
reinsurance approximately $13 billion of net par insured from CIFG
NA's U.S. public finance business. As part of the transaction, Assured
will receive unearned premium reserves of approximately $88 million.

"We are pleased to have the opportunity to provide CIFG NA's
policyholders with the safety and security of Assured's financial
strength," commented Dominic Frederico, President and Chief Executive
Officer of Assured Guaranty Ltd. "Public finance investors will
benefit from an upgrade of the rating on their investment if they
agree to the novation of their current policy with CIFG NA, and we
look forward to helping them make the novation process as quick and
efficient as possible."

"This agreement is another important step towards ensuring CIFG NA
honors its obligations to its policyholders," said John Pizzarelli,
Chief Executive Officer of CIFG Holding, Ltd. "I would especially like
to thank the New York State Insurance Department and Superintendent
Eric Dinallo for their assistance in helping us reach this agreement."

After closing, Assured and CIFG NA will work together to novate
the reinsured policies from CIFG NA to Assured. This novation will
provide policyholders with Assured's direct guaranty of their
obligation and will eliminate CIFG NA's obligation under its current
guaranty policy to any participating policyholder.

The agreement is subject to the receipt of regulatory approvals as
well as other closing conditions. The agreement is not subject to a
financing contingency. The parties expect to close the transaction in
the fourth quarter 2008. Lazard advised CIFG NA and Banc of America
Securities LLC advised Assured on this transaction.

Assured Guaranty Ltd. is a Bermuda-based holding company whose
subsidiaries provide credit enhancement products to the capital
markets through its three principal insurance subsidiaries: Assured
Guaranty Corp., Assured Guaranty (UK) Ltd. and Assured Guaranty Re
Ltd.

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.

CIFG Assurance North America, Inc., a New York licensed financial
guaranty insurance company, is part of the CIFG group of companies
including CIFG Holding, Ltd., CIFG Guaranty, Ltd. and CIFG Europe.

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.

Assured Guaranty Ltd., Hamilton
Equity Investors:
Sabra Purtill, Managing Director, Global Communications
and Investor Relations, 212-408-6044 or 441-299-9375
spurtill@assuredguaranty.com
or
Ross Aron, Associate, Investor Relations, 212-261-5509
raron@assuredguaranty.com
or
Media:
Ashweeta Durani, Vice President, Global Communications,
212-408-6042 or 917-597-2065
adurani@assuredguaranty.com
or
CIFG Assurance North America, Inc.
Steve Pachella, Managing Director, Head of Strategy,
212-909-3955
s.pachella@cifg.com
or
Thierry Dissaux, Managing Director, Head of
European Operations, 33 1 58 55 65 13
t.dissaux@cifg.com

Copyright Business Wire 2008