Assured Guaranty Ltd. Provides Update on Exposure to Hurricane Katrina

Assured Guaranty Ltd. (NYSE:AGO) today disclosedinformation updating the net par outstanding exposure of its operatingsubsidiaries in the financial guaranty direct and financial guarantyreinsurance segments to the areas most affected by Hurricane Katrina.This update reflects the addition of new counties eligible for bothpublic and individual assistance by the Federal Emergency ManagementAgency ("FEMA") and the receipt from our ceding companies of updatedinformation on our reinsurance exposures. Assured Guaranty has alsorevised its presentation of net par outstanding exposure to reflectGreater New Orleans, which includes the City of New Orleans andOrleans, Jefferson and St. Bernard parishes, in order to be consistentwith disclosures made by other financial guaranty companies. AssuredGuaranty first reported on its exposure to Hurricane Katrina onSeptember 6, 2005.

Assured Guaranty's net par outstanding public finance exposure incounties designated by FEMA for both individual and public assistancein the states of Louisiana, Mississippi and Alabama totals $219.9million; details by asset category are included in Table 1 below. Thisis a $64.9 million increase from our September 6, 2005 press release.The Company's net par outstanding public finance exposure withinGreater New Orleans is $143.7 million compared to the amount of $77.6million for the City of New Orleans only, as we previously reported onSeptember 6, 2005. A list of the Company's top ten public financeexposures in counties designated by FEMA for both individual andpublic assistance in the affected states is provided in Table 2.
Table 1

Public Finance Exposure in FEMA-Designated Counties(a)
Net Par Outstanding as of June 30, 2005
($ in Millions)

Greater New Other
Bond Type Alabama Orleans(b) Louisiana Mississippi Total
--------------------------- ----------- ---------- ----------- -------
General obligation $5.2 $14.9 $1.7 $6.8 $28.6
Healthcare 2.1 19.2 9.8 6.7 37.8
Higher education 0.1 3.7 0.9 0.7 5.5
Housing - 0.1 0.6 0.1 0.9
Municipal utility 1.1 8.6 - 3.8 13.5
Other public finance - 0.8 - - 0.8
Tax backed 0.3 72.7 17.9 18.2 109.2
Transportation - 23.6 0.1 - 23.7
------- ----------- ---------- ----------- -------
Total $8.9 $143.7 $31.1 $36.3 $219.9
------- ----------- ---------- ----------- -------

(a) Counties designated by FEMA for both individual and public
assistance as of September 12, 2005
(b) Includes Orleans, St. Bernard and Jefferson Parish


Table 2

Top Ten Public Finance Exposures in FEMA-Designated Counties(a)
Net Par Outstanding as of June 30, 2005
($ in Millions)

1 Ernest N. Morial - New Orleans Exhibition Hall
Authority $29.7
2 New Orleans Aviation Board 20.7
3 West Jefferson Medical Center 16.5
4 Rankin County School District 16.3
5 Jefferson Parish Special Sales Tax 15.5
6 Louisiana Stadium & Exposition District 13.1
7 New Orleans General Obligation 9.9
8 St. Tammany Parish School Board 7.6
9 New Orleans Water Facilities 7.3
10 Franciscan Missionaries of Our Lady Health System 6.3
----------
Total Top Ten Public Finance Exposures in
FEMA-Designated Counties(a) $142.9

(a) Counties designated by FEMA for both individual and public
assistance as of September 12, 2005

Assured Guaranty's exposure to investor-owned utilities in theaffected states totals $65.9 million and is presented in Table 3. Withrespect to the Company's structured finance net par outstanding,management's review of Assured Guaranty's structured finance portfolioshows no significant concentrations in the areas affected by HurricaneKatrina, as these exposures are generally secured by geographicallydiverse pools of assets.
Table 3

Investor-Owned Utility Exposure in Alabama, Louisiana and Mississippi
Net Par Outstanding as of June 30, 2005
($ in Millions)


Alabama Louisiana Mississippi Total
------- --------- ----------- ------
Investor-owned utilities $50.0 $4.4 $11.5 $65.9

For informational purposes, Assured Guaranty's total publicfinance net par outstanding exposure in Louisiana, Mississippi andAlabama is $1,493.0 million, inclusive of the counties designated byFEMA for individual and public assistance, and is summarized in Table4.
Table 4

Public Finance Exposure in Alabama, Louisiana and Mississippi
Net Par Outstanding as of June 30, 2005
($ in Millions)

Alabama Louisiana Mississippi Total
--------- --------- ----------- ---------
Public finance $1,070.6 $363.9 $58.5 $1,493.0

Assured Guaranty will continue to monitor the impact of HurricaneKatrina on the credit quality of these exposures. At the present time,Assured Guaranty's management is not able to determine the likelihoodof losses but the company's risk management department is activelymonitoring specific exposures in coordination with our reinsuranceclients as well as tracking the various proposals regarding state andfederal financial assistance in the affected areas that could affectthe creditworthiness of our net par outstanding exposures.

Additional information regarding Assured Guaranty's exposure toHurricane Katrina, including exposure information for Assured GuarantyCorp., can be found in the Investor Information section of our websiteat www.assuredguaranty.com. We will periodically provide updates onour net par outstanding exposures to Hurricane Katrina on our website.

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

Any forward-looking statements made in this press release reflectthe Company's current views with respect to future events andfinancial performance and are made pursuant to the safe harborprovisions of the Private Securities Litigation Reform Act of 1995.Such statements involve risks and uncertainties that may cause actualresults to differ materially from those set forth in these statements.Among other things, the forward looking statements could be affectedby the number of insured and ceding companies affected by HurricaneKatrina, the amount and timing of losses, the preliminary nature ofreports, government action in response to Hurricane Katrina, changesin general economic conditions, as well as management's response tothese factors, and other risk factors identified in Assured GuarantyLtd.'s filings with the Securities and Exchange Commission. Readersare cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of the dates on which they are made.Assured Guaranty Ltd. undertakes no obligation to publicly update orrevise any forward-looking statements, whether as a result of newinformation, future events or otherwise.