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Assured Guaranty enters into agreement with CIFG NA

The parties expect to close the transaction in Q4, 2008

Assured Guaranty Corporation, a financial guaranty subsidiary of Assured Guaranty Limited, has entered into a definitive agreement with CIFG Assurance North America (CIFG NA), under which Assured will assume via reinsurance approximately $13 billion of net par insured from CIFG Assurance North America’s U.S. public finance business.

As part of the transaction, Assured will receive unearned premium reserves of approximately $88 million.

After closing, Assured and CIFG Assurance North America will work together to novate the reinsured policies from CIFG NA to Assured. This novation will provide policyholders with Assured’s direct guaranty of their obligation and will eliminate CIFG NA’s obligation under its current guaranty policy to any participating policyholder.

The agreement is subject to the receipt of regulatory approvals as well as other closing conditions. The agreement is not subject to a financing contingency. The parties expect to close the transaction in the fourth quarter of 2008. Lazard advised CIFG NA and Banc of America Securities advised Assured on this transaction.

Dominic Frederico, president and CEO of Assured Guaranty Limited, said: Public finance investors will benefit from an upgrade of the rating on their investment if they agree to the novation of their current policy with CIFG NA and we look forward to helping them make the novation process as quick and efficient as possible.