Primus and Counterparty Terminate $1.3 Billion of Credit Swaps

HAMILTON, Bermuda--(Business Wire)--
Primus Guaranty, Ltd. (NYSE: PRS) today announced that its subsidiary, Primus
Financial Products, LLC ("Primus Financial"), has terminated $1.3 billion
notional principal of credit swaps with a significant counterparty. These swaps
represent the counterparty`s entire portfolio of credit swaps with Primus
Financial. Primus Financial paid $6.5 million to the counterparty, a significant
discount to the market value of the portfolio, to terminate these swaps.
Included in this portfolio were a small number of reference entities which
Primus Financial concluded had a high risk profile, including certain financial
guarantors.

This is the second credit mitigation transaction that Primus Financial has
completed and announced in recent months. Through these transactions, Primus
Financial has terminated approximately $1.4 billion of single-name credit swaps,
and has capped its exposure to an additional $1.2 billion of credit swaps,
assigning them to a newly formed, wholly owned subsidiary.

The company continues to discuss with its counterparties potential credit
mitigation transactions, as it actively manages its credit protection portfolio
in amortization. Primus Financial`s previously announced strategy is to address
certain concentration issues in a small number of higher risk sectors, including
insurance, building/development and retail, among others. No assurance can be
given that the company will be successful in completing risk mitigation
transactions or, if successful, that Primus Financial will achieve the desired
risk reductions in its portfolio.

About Primus Guaranty

Primus Guaranty, Ltd. is a Bermuda company with operations in New York, Boston
and London. Through its subsidiaries, the company is a leading manager of
corporate credit assets and provider of credit protection. Primus manages assets
in structured credit funds and operating companies, across a range of asset
classes - including investment grade, high yield and leveraged loans - using
both cash and synthetic instruments.

Safe Harbor Statement

Some of the statements included in this press release and other statements
Primus Guaranty may make, particularly those anticipating future financial
performance, business prospects, growth and operating strategies, market
performance, valuations and similar matters, are forward-looking statements that
involve a number of assumptions, risks and uncertainties, which change over
time. For those statements, Primus Guaranty claims the protection of the safe
harbor for forward-looking statements contained in the U.S. Private Securities
Litigation Reform Act of 1995. Any such statements speak only as of the date
they are made, and Primus Guaranty assumes no duty to, and does not undertake
to, update any forward-looking statements. Actual results could differ
materially from those anticipated in forward-looking statements, and future
results could differ materially from historical performance. For a discussion of
the factors that could affect the company's actual results please refer to the
risk factors identified from time to time in the company's SEC reports,
including, but not limited to, Primus Guaranty's Annual Report on Form 10-K, as
filed with the U.S. Securities and Exchange Commission.

Media:
Kennedy & Company
Steven Kennedy, 914-961-2436 ext. 13
steven@kennedycom.com
or
Investor Relations:
Primus Guaranty, Ltd.
Nicole Stansell, 212-697-1992
investorrelations@primusguaranty.com

Copyright Business Wire 2009