PMI Australia Celebrates its 40th Anniversary in the Australian Mortgage Market.

WALNUT CREEK, Calif. -- PMI Mortgage Insurance Ltd., or PMI Australia, a wholly-owned subsidiary of The PMI Group, Inc. (NYSE:PMI), reached an industry milestone this month. PMI Australia marked its 40th year anniversary operating in the Australian mortgage market, where it has provided Lenders Mortgage Insurance to almost 2 million Australian households.

"PMI Australia has been the mainstay of our international operations, having consistently delivered a strong record of net income growth, outstanding claims and delinquency performance. PMI Australia's strong foundation, experience and knowledge bode well for its future innovations and successes. We are proud of all PMI Australia has accomplished in 40 years and delighted to mark this achievement," said Roger Haughton, Chairman and Chief Executive Officer, The PMI Group, Inc.

To celebrate its 40th anniversary, PMI Australia has planned events for customers and industry participants throughout the year to communicate its future plans, as well as its commitment through regular business activities and the continuing development of its innovative product range.

"This year marks a significant milestone for PMI Australia and reflects our long-standing vision and commitment to creating home ownership opportunities for more Australian families," said Ian Graham, Managing Director of PMI Australia and New Zealand.

Mr. Graham has led PMI Australia to many notable milestones in the Australian mortgage industry during his 27 years of service, with the key highlights including:

--1965: PMI Australia (then known as MGICA) commenced its Australian operations, introducing Lenders Mortgage Insurance into the local market enabling homeowners with less than 20% down payment to enter the market.

--1988: MGICA (PMI Australia) expanded its local operations with a move into the New Zealand market.

--1999: the PMI Group Inc. became the owner of the MGICA company in Australia and New Zealand and the company officially became known as PMI Mortgage Insurance Ltd.

--2000: PMI Australia expanded beyond its monoline product to offer multiple products designed to serve the specific needs of a variety of homebuyers, including self employed borrowers.

--2000: PMI Australia supports building of the first PMI Habitat for Humanity house in Australia

--2001: PMI Australia acquired CGU Lenders Mortgage Insurance Limited.

--2004: PMI Australia exceeds a total asset base of AUD $1 Billion.

--2004: PMI Australia launched its first short-term deposit bond, PMI Home Deposit.

PMI Australia's growth is underpinned by its financial strength and today PMI Australia is one of the highest rated Lenders Mortgage Insurers in Australia with the current ratings:

--Standard and Poor's - AA (stable outlook)

--Moodys - Aa2 (stable outlook)

--Fitch - AA (stable outlook)

About PMI Australia: PMI Mortgage Insurance Ltd. (PMI Australia) is one of the largest mortgage insurers in Australia and New Zealand with 40 years experience in the Australian market and 16 years in the New Zealand market. PMI Australia provides a variety of mortgage insurance and credit enhancement products to bank and non-bank lending institutions in Australia and New Zealand. PMI Australia makes home ownership possible for many Australians and New Zealanders. In addition, PMI Australia provides important credit enhancement for residential mortgage-backed securitization (RMBS) programs, which underpin much of the mortgage lending from the non-bank sector. PMI's global parent, The PMI Group, Inc. headquartered in Walnut Creek, California, is through its subsidiaries one of the largest private mortgage insurers in the US, Australia, New Zealand and the European Union, as well as the largest private mortgage re-insurer in Hong Kong.

Cautionary Statement: Statements in this presentation that are not historical facts or that relate to future plans, events or performance are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from those expressed in this release. Factors that could cause or contribute to such material differences are discussed in our Report on Form 10-Q for the quarter ended June 30, 2004 filed with the Securities and Exchange Commission.