In the News:

NEW YORK, January 22, 2004 -- The Association of Financial Guaranty Insurers (AFGI) announced today that Neil G. Budnick, Vice Chairman and Chief Financial Officer of MBIA Insurance Corporation, has been elected to a two-year term as the association's Chair.

Mr. Budnick succeeds David L. Boyle, Vice Chairman of Ambac Financial Group, Inc., the holding company for Ambac Assurance Corporation (Ambac), who served as AFGI's Chair since 2002. Mr.\Budnick previously served as AFGI's Treasurer.

Also elected to two-year terms were Martin A. Kamarck, President, Radian Asset Assurance Inc. and Radian Reinsurance Inc., who will serve as Vice Chair; Séan W. McCarthy, President and Chief Operating Officer, Financial Security Assurance (FSA), serving as Treasurer; and David Stevens, President, XL Capital Assurance, as Secretary.

"I'm proud to have been selected to lead AFGI for the next two years," said Mr. Budnick. "Our industry, which got its start over 30 years ago, has continued to grow as increasing numbers of issuers and investors recognize the benefits of our financial guarantees. The past several years have been record setting in terms of the volume of insurance written, including the international arena for both municipal and asset-back issues. At the same time, our members' combined financial strength has also continued to grow. Analysts and economists are predicting that 2004 will be another strong year for municipal bonds and asset-backed securities, and we look forward to serving the credit enhancement needs of the marketplace in the United States and abroad."

AFGI's ten member companies, highly rated insurers and reinsurers of municipal bonds and structured asset-backed securities, provide an unconditional and irrevocable guarantee of scheduled interest and principal payments of their insured securities. Securities insured by AFGI companies carry the claims-paying ratings of the insurers, resulting in a lower cost of funding. About half of all municipal bonds that are issued carry municipal bond insurance from an AFGI member company.

Mr. Budnick has more than 25 years of experience in the public finance and the financial guaranty industry. With MBIA since 1984, he has been responsible for the company's municipal and structured finance areas during his tenure there. He currently heads the company's finance and treasury, strategic planning, reinsurance, banking and liquidity facilities, and information technology functions. Before joining MBIA, Mr. Budnick worked five years with Standard & Poor's Corporation, where he was Managing Vice President in the public finance department.

About AFGI
AFGI is the trade association representing the ten insurers and reinsurers of municipal bonds and asset-backed securities. AFGI member companies are ACA Financial Guaranty Corporation, ACE Guaranty Corp., Ambac Assurance Corporation, CDC IXIS Financial Guaranty North America, Inc, Financial Guaranty Insurance Company, Financial Security Assurance Inc., MBIA Insurance Corporation, Radian Reinsurance Inc., RAM Reinsurance Company Ltd. and XL Capital Assurance Inc.

All AFGI member firms operate under the strict risk-based capital provisions of Article 69 of the New York Insurance Law. To safeguard the rating of the insured obligations and to protect the interests of insured bond investors, AFGI firms subscribe to a "zero loss" or "remote loss" underwriting standard. Securities insured by AFGI members receive the unconditional guarantee of scheduled principal and interest payments to holders of these obligations. In the 33-year history of the financial guaranty industry, no issue insured by an AFGI member has ever been downgraded, and no member company has ever failed to fulfill its payment obligations to insured bond investors when due.