New York, January 16, 2002 - The Association of Financial Guaranty Insurors (AFGI) announced today that David L. Boyle, Vice Chairman of Ambac Financial Group, Inc., the holding company for Ambac Assurance Corporation (Ambac), has been elected to a two-year term as the association's Chair. Mr. Boyle succeeds Robert P. Cochran, Chairman and Chief Executive Officer of Financial Security Assurance Holdings Ltd., who served as AFGI's Chair since 2000. Mr. Boyle previously served as AFGI's Treasurer.

Also elected to two-year terms were Joseph W. Swain, President, ACE Guaranty Re, as Vice Chair; Neil G. Budnick, Vice Chairman, MBIA Insurance Corporation, as Treasurer; and Deborah M. Reif, Chairman, Financial Guaranty Insurance Company, as Secretary.

Mr. Boyle joined Ambac in 1997 as Senior Vice President for Financial Management Services. He was promoted to Executive Vice President in July of that year and Vice Chairman of the Municipal Financial Services Group in 1998. He currently is responsible for Ambac's Portfolio Risk Management Group. Prior to joining Ambac, Mr. Boyle spent 22 years at Citibank, N.A., in various institutional banking management positions, most recently as Managing Director of global custody, funds administration and securities lending.

AFGI's nine member firms represent the insurers and reinsurers of municipal bonds and asset-backed securities. A bond or other security insured by an AFGI member provides the unconditional guaranty that scheduled interest and principal will be paid on time and in full to security holders. In providing credit enhancement, AFGI member companies help to facilitate the development and growth of fixed-income markets around the world. Since the industry's founding in 1971, AFGI member firms have insured nearly $2 trillion in debt securities.

AFGI member firms are Ambac Assurance Corporation, ACA Financial Guaranty Corporation, ACE Guaranty Re, Radian Reinsurance, Inc., Financial Guaranty Insurance Company, Financial Security Assurance, MBIA Insurance Corporation, RAM Reinsurance Company and XL Capital Assurance.