Assured Guaranty Ltd. Announces $150 Million Enhanced Junior Subordinated Debentures Pricing.

HAMILTON, Bermuda -- Assured Guaranty Ltd. (NYSE:AGO) ("Assured Guaranty" or the "Company") has announced that its subsidiary, Assured Guaranty US Holdings Inc., has priced its $150 million Series A Enhanced Junior Subordinated Debentures due 2066. The debentures will pay a fixed 6.40% rate of interest until December 15, 2016 and pay a floating rate based on three month LIBOR plus a margin of 2.38% with quarterly resets thereafter.

As previously announced, the Company plans to use the proceeds of this offering to repurchase 5.7 million common shares of Assured Guaranty from a subsidiary of ACE Limited.

Dominic Frederico, President and Chief Executive Officer of Assured Guaranty Ltd., commented, "We are very pleased with the execution of both the debenture offering and the share repurchase. Together these transactions are evidence of our commitment to manage our capital in an efficient manner to meet our strategic goals and those of our stakeholders."

Banc of America Securities LLC acted as structuring advisor and book-runner, and Deutsche Bank Securities Inc. and Merrill Lynch & Co. acted as joint book-runners. A copy of the prospectus supplement and accompanying prospectus may be obtained by calling toll-free: Banc of America Securities LLC at [phone], Deutsche Bank Securities Inc. at [phone] or Merrill Lynch & Co. at [phone].

This press release is not an offer to sell or a solicitation of an offer to buy any security. The debt offering is being made solely by the Prospectus and only to such persons and in such jurisdictions as is permitted under applicable law.

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 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 Company's forward-looking statements, including statements regarding share repurchase could be affected by many events. These events include 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.