Assured Guaranty Corp. and CIFG Assurance North America, Inc. Resolve Reinsurance Dispute

Assured Guaranty Corp. ("AGC") and CIFG Assurance North America, Inc. ("CIFG") announced that they have reached an agreement to settle their dispute related to CIFG Policy No. 1259 (the "Xenia Policy") insuring $83.8 million of water revenue bonds issued by Xenia Rural Water District, Iowa in 2006. Under the settlement agreement, the pending litigation between AGC and CIFG related to the Xenia Policy will be dismissed in the ordinary course and the Xenia Policy will be a "Covered Policy" under the Quota Share Reinsurance Agreement dated January 21, 2009 (the "Reinsurance Agreement") between AGC and CIFG. As a result, AGC will reinsure CIFG for 100% of the Xenia Policy, and CIFG and AGC will seek to novate the Xenia Policy to AGC according to the terms and procedures adopted by CIFG and AGC with respect to the novation of other CIFG policies covered by the Reinsurance Agreement.

For more information on the novation process, go to www.cifg.com or www.assuredguaranty.com/novation. About AGC AGC is a Maryland-domiciled insurance company regulated by the Maryland Insurance Administration and licensed to conduct financial guaranty insurance business in all 50 states of the United States, the District of Columbia and Puerto Rico. AGC commenced operations in 1988. AGC is a wholly owned, indirect subsidiary of Assured Guaranty Ltd. ("AGL"), a Bermuda-based holding company whose shares are publicly traded and are listed on the New York Stock Exchange under the symbol "AGO." AGL, through its operating subsidiaries, provides credit enhancement products to the U.S. and international public finance, infrastructure finance and structured finance markets. Neither AGL nor any of its shareholders is obligated to pay any debts of AGC or any claims under any insurance policy issued by AGC.