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Assured Guaranty Corp. Guarantees $339 Million in Bonds for Louisville Arena Authority and Announces August U.S. Public Finance New Issue Volume

NEW YORK-(Business Wire)-September 4, 2008 - Assured Guaranty Corp. (“Assured” or the “Company”), the triple-A rated financial guaranty subsidiary of Assured Guaranty Ltd. (NYSE:AGO), announced today that it guaranteed $319 million of fixed rate tax-exempt and $20 million of fixed rate taxable bonds for the Louisville Arena Authority (“LAA”).

Assured also announced a significant increase in new issue U.S. public finance transactions insured by the Company in August 2008, despite the decline in insured U.S. public finance bonds marketwide. The Company insured 58 new issue U.S. public finance transactions for approximately $1.3 billion in par insured in August 2008 compared to 10 deals for $220 million of par in August 2007. The Company’s new issue U.S. public finance market share for August 2008 was 59.3%.

“We are pleased to announce the closing of the Louisville Arena transaction as well as our strong August market share, which we believe demonstrates investors’ appreciation for the value that Assured provides to transactions,” noted Bill Hogan, Senior Managing Director of Assured’s Public Finance Group. “The LAA benefits from the initial cost savings on these bonds, while investors benefit from the enhanced secondary market liquidity provided by our guaranty as well as the Company’s extensive due diligence, structuring expertise and bondholder representation.”

The Louisville Arena Project Revenue Bonds, Series 2008, will fund the construction of a new basketball arena that will be the home court for the University of Louisville men’s and women’s basketball program. The arena, which will be located in downtown Louisville, is also expected to be used to host other sporting and entertainment events. The bonds are secured by annual payments from the Louisville/Jefferson County Metro Government, a consolidated local council representing all of Jefferson County, incremental State of Kentucky property and sales tax revenues and other arena revenues such as naming rights, advertising, rentals, ticket surcharges and concessions.

Assured Guaranty Corp. is a leading provider of financial guaranty insurance in the U.S. and international public finance, structured finance and mortgage-backed securities markets. Assured Guaranty Corp. is rated triple-A by the three leading rating agencies and is licensed in all 50 states, the District of Columbia and Puerto Rico.

Assured Guaranty Ltd. is a Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, structured finance and mortgage markets. More information can be found at www.assuredguaranty.com.

Any forward-looking statements made in this press release reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements, including its statements regarding the expansion of the consumer and mortgage-backed securities business, could be affected by a significant reduction in the amount of reinsurance ceded by one or more of our principal ceding companies, rating agency action such as a ratings downgrade, difficulties with the execution of the Company’s business strategy, contract cancellations, developments in the world’s financial and capital markets, more severe or frequent losses associated with products affecting the adequacy of the Company’s loss reserve, changes in regulation or tax laws, governmental actions, natural catastrophes, the Company’s dependence on customers, decreased demand or increased competition, loss of key personnel, technological developments, the effects of mergers, acquisitions and divestitures, changes in accounting policies or practices, changes in general economic conditions, other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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