MBIA MUNICIPAL INVESTORS SERVICE CORP. ACQUIRES CONTRACT TO MANAGE $50 MILLION COLORADO INVESTMENT POOL.

ARMONK, N.Y.--(BUSINESS WIRE)--March 21, 1995-- MBIA Municipal Investors Service Corporation (MBIA-MISC) announced today that it has purchased the investment management and administrative contract for the Colorado Statewide Asset Trust (CSWAT). MBIA-MISC is a wholly owned investment advisory subsidiary of MBIA Inc. (NYSE:MBI). As a result of this acquisition, CSWAT will now be known as Colorado CLASS. The trust has current balances of approximately $50 million for 26 municipal participants located throughout Colorado. With the acquisition of this contract, MBIA-MISC now provides investment management programs under the trade name CLASS (Cooperative Liquid Assets Securities System) in seven states.

Marilyn Green, Chairman of the trusts board of participants and Treasurer and Public Trustee of Douglas County, Colorado commented, We are pleased with the acquisition and look forward to our association with MBIA-MISC. We feel the reputation and financial security of MBIA can only help our fund to grow and be more successful.

CLASS provides its public sector participants with the ability to invest operating funds in compliance with the statutory investment guidelines for each respective state. In general, CLASS investments are made in U.S. Government direct and guaranteed obligations or in repurchase agreements which are 102 percent collateralized by such securities and held in segregated third-party custodial accounts in banks located in each state served.

MBIA-MISC is pleased to provide public entities in Colorado with a full service investment management program designed to make the job of managing public funds safer and simpler, said Leon J. Karvelis, Jr., president of MBIA-MISC. In the wake of the fiscal crisis in Orange County, California, public officials are more interested than ever in prudent management of their funds. CLASS offers government entities a safe, professionally managed short-term investment fund that achieves competitive yields and offers daily liquidity. We are very excited about our prospects for growth in Colorado, he added.

MBIA-MISCs affiliate, MBIA Corporation, is the nations leading insurer of municipal bonds and has a long tradition of service to municipalities in Colorado. Since 1974, the company has insured over 300 new issues representing over $3.5 billion in par value, saving Colorado taxpayers more than $116 million in net interest costs.

MBIA-MISC, an SEC-registered investment advisor, is a leading provider of investment management services to the public sector. MBIA-MISC manages ten short-term local government investment pools with over $2 billion of assets under management for 1,200 public entities. In the states of New York, New Jersey, Connecticut, Maine, Michigan and Rhode Island, the programs are run under the CLASS name. MBIA-MISC also provides cash management and administrative services for the New Hampshire Public Deposit Investment Pool, a state sanctioned investment program for New Hampshires public entities.

CONTACT: MBIA Municipal Investors Services Corp.

Michael Ballinger, 914/765-3893

or

Risk B. Mattler, 914/765-3892