Due to deterioration in the market value and liquidity of its assets resulting from market volatility in the third quarter, the ALM business was required to use a portion of its free cash to support increased collateral requirements under market value-based intercompany lending facilities, derivative counterparty collateral support agreements and guaranteed investment contracts. Consequently, it requested and received an extension of its original $2.0 billion secured loan from MBIA Corp. which was scheduled to mature in November 2011. Under its revised terms, the secured loan now matures in the second quarter of 2012 and is subject to a maximum outstanding balance of $450 million. The secured loan had an outstanding balance of $600 million as of September 30, 2011, with additional payments after the end of the quarter resulting in a current outstanding balance of $300 million.

Conference Call

The Company will host a webcast and conference call for investors tomorrow, Thursday, November 10, 2011 at 8:00 AM (EST) to discuss its third quarter 2011 financial results and other matters relating to the Company. The webcast and conference call will consist of brief remarks followed by a question and answer session.

The dial-in number for the call is (877) 694-4769 in the U.S. and (404) 665-9935 from outside the U.S. The conference call code is 18831560. A live webcast of the conference call will also be accessible on www.mbia.com.

A replay of the call will be available approximately two hours after the completion of the call on November 10 until 11:59 p.m. on November 24 by dialing (800) 585-8367 in the U.S. or (404) 537-3406 from outside the U.S. The replay call code is also 18831560. In addition, a recording of the call will be available on the Company's website approximately two hours after the completion of the call.

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