2008-08-13 23:57:02 -

- Assured Guaranty Corp. ("Assured" or the "Company"), the triple-A rated financial guaranty subsidiary of Assured Guaranty Ltd. (NYSE:AGO), announced today that it closed a $350 million fixed rate tax exempt financing for the New Jersey Higher Education Student Assistance Authority ("HESAA").

"We are pleased to participate in this important transaction for the State of New Jersey," noted Mike Schozer, President of Assured Guaranty Corp. "Assured's financial guarantee continues to enable municipal and state issuers to receive the necessary financing for valuable public purposes, such as higher education."

Assured will guarantee the securities that will provide HESAA with funding to help New Jersey students finance their college education. HESAA's mission in providing supplemental loans is to assist students

with paying for the total costs of college not covered by other forms of student aid. This is the Company's first insured primary market student loan transaction and the first of several student loan programs that Assured is considering.

"Assured is committed to helping the public sector meet the education finance requirements of their constituents, which has become more difficult in today's challenging consumer credit markets," commented Jeff Nabi, Senior Managing Director, Consumer and Mortgage Backed Securities.

Assured has seen a steady stream of activity in the direct new issue U.S. public finance market throughout the month of July. In new issue sales for the competitive market, Assured wrapped 40 transactions for $601.6 million in par and for new issue sales in the negotiated market, Assured wrapped 40 transactions totaling $1,721.7 million in par.

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.

Assured Guaranty Corp., New York
Equity Investors:
Sabra Purtill, CFA, Managing Director,
Global Communications and Investor Relations
212-408-6044, 441-299-9375
spurtill@assuredguaranty.com
or
Ross Aron, Associate, Investor Relations, 212-261-5509
raron@assuredguaranty.com
or
Fixed Income Investors:
Mike Walker, Director, Fixed Income Investor Relations
212-261-5575
mwalker@assuredguaranty.com
or
Media:
Ashweeta Durani, Vice President, Global Communications
212-408-6042, 917-597-2065
adurani@assuredguaranty.com