Primus Completes $400 Million Collateralized Loan Obligation.

HAMILTON, Bermuda -- Primus Guaranty, Ltd. (NYSE:PRS) has completed the offering of Primus CLO I, its first collateralized loan obligation.

Primus CLO I, which is managed by the company's Primus Asset Management subsidiary, is a $400 million collateralized loan obligation primarily composed of leveraged loans. Lehman Brothers underwrote the offering.

"The completion of our first collateralized loan obligation marks another step forward in our strategy to leverage our core credit competency, build our asset management business and diversify our revenue base," said Thomas W. Jasper, Chief Executive Officer at Primus Guaranty. "With our talented team of professionals and growing reputation in the marketplace, we believe there are attractive growth opportunities for our asset management business."

About Primus Guaranty

Primus Guaranty, Ltd., through one of its operating subsidiaries, Primus Financial Products, LLC, offers protection against the risk of default on corporate, sovereign and asset-backed security obligations. Primus Financial assumes these risks through the sale of credit swaps to dealers and banks. As a swap counterparty, Primus Financial is rated Aaa by Moody's Investor Service, Inc. and AAA by Standard & Poor's Rating Services. Another operating subsidiary of Primus Guaranty, Primus Asset Management, Inc., provides credit portfolio management services to Primus Financial, manages a collateralized loan obligation and three synthetic collateralized debt obligations for selected third parties and also manages Primus Trading Strategies, LLC.

Primus Guaranty, LTD is traded on the New York Stock Exchange under the symbol PRS. Primus Guaranty is a Bermuda company, with the operations of its principal subsidiaries, Primus Financial Products, Primus Asset Management and PRS Trading Strategies, headquartered in New York City.

Safe Harbor Statement

Some of the statements included in this press release, particularly those anticipating future financial performance, business prospects, growth and operating strategies and similar matters, are forward-looking statements that involve a number of risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. For a discussion of the factors that could affect our actual results please refer to the risk factors identified from time to time in our SEC reports, including, but not limited to, our 10-K, as filed with the SEC.