PMI Australia Wins Prime Minister's Award for Community Partnership.

WALNUT CREEK, Calif. -- PMI Mortgage Insurance Ltd. (PMI Australia), a wholly-owned subsidiary of The PMI Group, Inc. (NYSE:PMI), announced today that it was named winner of the 2004 Australian Prime Minister's award for Excellence in Community Business Partnerships. PMI Australia won this award for the medium-sized business category in New South Wales, PMI Australia's state of domicile.

This award recognizes successful partnerships between business and community organizations, and the contributions these alliances generate to benefit the broader Australian community.

PMI Australia, through its partnership with Habitat for Humanity Australia, was recognized for its commitment in creating affordable housing opportunities for underserved families, thus enabling these families to achieve their dream of home ownership.

"PMI's active participation with Habitat for Humanity has generated positive and long-term outcomes at the community level by helping low-income Australian families get into their own home. It's the alignment of this relationship that is vital in supporting PMI's core values, which focus on making home ownership attainable for all Australians," said Ian Graham, Managing Director, PMI Australia.

To support the company's vision for creating home ownership through affordable housing initiatives, PMI commenced its partnership with Habitat for Humanity in 2000 and is currently scheduled to start construction on the 4th joint PMI and Habitat for Humanity house in Australia in August.

"With the ongoing support that PMI has given Habitat, we have enabled more low income Australian families to realise their dreams. We are extremely appreciative to have such a unique partner who not only understands but gives so wholeheartedly to our vision," said Habitat for Humanity Australia Chief Executive Officer, Michael Pailthorpe.

Mr. Graham added that PMI's partnership with Habitat "not only has a positive impact on the team's morale, but it also helps extend the partnership benefits through teamwork and the opportunity to work closely with the community."

PMI Australia is one of the largest mortgage insurers in Australia and New Zealand with over 35 years experience in the Australian market and 15 years in the New Zealand market. It provides a variety of credit enhancement products to the majority of bank and non-bank lending institutions in Australia and NZ. By providing coverage against potential losses arising from defaults on residential mortgages held on their portfolios, PMI makes home ownership possible for many Australians and New Zealanders. In addition, PMI provides important credit enhancement for residential mortgage-backed securitisation (RMBS) programs, which underpin much of the mortgage lending from the non-bank sector.

PMI Australia's global parent, The PMI Group, Inc., headquartered in Walnut Creek, California, is an international provider of credit enhancement products that promote homeownership and facilitate mortgage transactions in the capital markets. Through its wholly owned subsidiaries and unconsolidated strategic investments, the company offers residential mortgage insurance and credit enhancement products domestically and internationally, financial guaranty insurance and financial guaranty reinsurance.