Assured Guaranty Announces Its First Transaction with KfW, a GBP 383 Million Pool of UK PFI and PPP Loans Called the Stichting Profile Securitisation 1 (PROFILE I).

NEW YORK -- Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd. (NYSE:AGO), announced that its has guaranteed a senior credit default swap written by AG Financial Products Inc., its New York based derivatives counterparty, on a GBP 383 million pool of UK Private Finance Initiative (PFI) and Public Private Partnerships (PPP) project loans.

The transaction was arranged by NIBC Bank N.V. (NIBC) and utilized a securitization platform sponsored by KfW Forderbank (KfW Promotional Bank), a brand of KfW Bankengruppe, a leading financial institutional and fixed income issuer guaranteed by the Federal Republic of Germany. The project loans in the reference pool were originated, including by way of acquisition from a third party, by Sumitomo Mitsui Banking Corporation Europe Ltd. (SMBCE), a major lender in the UK PFI and PPP market.

Marc Bajer, Managing Director of Assured Guaranty's European operations commented, "We are delighted to have been chosen for this transaction, which represents only the second time pooled PFI loans have been guaranteed by a monoline. Our expertise in the European PFI market and in synthetic balance sheet transactions combined with our dedicated underwriting focus helped create a transaction that met all of the participants' needs in an efficient manner. This was our first KfW transaction and we look forward to growing our presence in this arena and working with SMBCE, NIBC and KfW again."

Mark Gordon, Head of Specialised Finance and New Products at SMBCE commented, "We consider this transaction essential to the continued development of our PFI business in the UK and Europe. Assured Guaranty proved to be an ideal partner throughout and was instrumental in the success of the deal."

According to Darren Kyte, Managing Director of NIBC, "This is a landmark transaction in the sector. For NIBC, it utilises both the Bank's expertise as a lender and adviser in the Infrastructure and PFI markets and in arranging and distributing structured finance transactions in Europe. Additionally, Assured Guaranty's strong knowledge of sector-specific credit issues greatly assisted NIBC in the smooth and efficient execution of the PROFILE 1 transaction. We expect the further evolution of this type of product as a bridge to institutional investment in the PFI market."

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.'s underwriting experience combined with its financial strength makes it the innovative financial guaranty partner of choice for issuers, investors and broker/dealers.

Assured Guaranty Ltd. is a Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, structured finance and mortgage markets. More information can be found at http://www.assuredguaranty.com.

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 forward-looking statements concerning potential business in the international credit enhancement markets could be affected by demand, competition and regulatory action. The forward looking statements also could be affected by rating agency action such as a ratings downgrade, difficulties with the execution of the business strategy, developments in the world's financial and capital markets, more severe losses or more frequent losses associated with products affecting the adequacy of the company's loss reserve, changes in tax laws, loss of key personnel, changes in accounting policies or practices, and changes in general economic conditions, as well as management's response to these factors, and other risk factors identified in Assured Guaranty Ltd.'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. Assured Guaranty Ltd. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.