Assured Guaranty Insures $382 Million Orkney Re II Series A-1, Its First Guaranty of a Regulation XXX Life Insurance Securitization.

NEW YORK -- Assured Guaranty Corp. ("AGC"), a subsidiary of Assured Guaranty Ltd. (NYSE:AGO), announced that its London subsidiary, Assured Guaranty (UK) Ltd., has guaranteed its first life insurance securitization. The guaranty was provided for the $382 million, 30-year maturity Orkney Re II plc Series A-1 Notes. Proceeds from the issuance will be used to fund certain statutory reserves associated with level-premium term life insurance policies (commonly referred to as Regulation XXX reserves) reinsured by Scottish Re (U.S.), Inc. between January 1, 2004 and December 31, 2004. Orkney Re II plc is a newly formed, public limited company established under the laws of Ireland for the sole purpose of reinsuring the defined business.

Paul Livingstone, Managing Director of AGC's Structured Credit and CDO Group commented, "We were pleased that Assured Guaranty (UK) was selected by Scottish Re to guarantee this transaction, our first new issue transaction in the Regulation XXX life insurance asset class. Our experienced team worked closely with the issuer and Goldman Sachs, the underwriter, to bring investors an attractive transaction in this emerging asset class."

Scott E. Willkomm, President and Chief Executive Officer of Scottish Re Group Limited commented, "This transaction marks another important milestone for Scottish Re's capital market's strategy. Scottish Re has, once again, blazed a new path in the evolving world of life insurance securitization by successfully completing an innovative transaction in an expedited time frame. We have built on the foundation developed in the first Orkney transaction, while adding structural enhancements that make the Orkney Re II structure more capital and cost efficient."

Assured Guaranty (UK) Ltd., a London-based subsidiary of Assured Guaranty Corp., is authorized by the Financial Services Authority to transact financial guaranty business in the United Kingdom and is able to write financial guaranty insurance in 27 countries in the European Economic Area.

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 make 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.