RMBS Settlement with Deutsche Bank: Assured Guaranty Ltd. (NYSE:AGO) (“AGL” and, together with its subsidiaries, “Assured Guaranty” or the “Company”) announced today that it has reached a settlement with Deutsche Bank AG and certain of its affiliates (collectively, “Deutsche Bank”), resolving claims related to residential mortgage-backed securities (“RMBS”) transactions issued, underwritten or sponsored by Deutsche Bank that were insured by Assured Guaranty under financial guaranty insurance policies and to certain RMBS exposures in re-securitization transactions on which Assured Guaranty provided credit protection through credit default swaps. As part of the agreement with Deutsche Bank, Assured Guaranty received a cash payment of $165.6 million, a portion of which will partially reimburse Assured Guaranty for past losses on certain transactions that are covered by a loss-sharing agreement, which also requires Deutsche Bank to pay a portion of Assured Guaranty’s future RMBS related losses. Please see our March 31, 2012 Form 10-Q for further details. “We are pleased to have reached a settlement with Deutsche Bank that further reduces our exposure to RMBS losses,” said Dominic Frederico, President and Chief Executive Officer. “Deutsche Bank represents the second major financial institution with whom we have settled over the past twelve months. This settlement further strengthens our balance sheet by providing a substantial cash payment and certainty related to the loss-sharing arrangement on future claims. We have now reached favorable settlements with respect to approximately 37% of the par outstanding of Assured Guaranty’s troubled legacy RMBS.” 1 These are financial measures that are not in accordance with accounting principles generally accepted in the United States of America (“GAAP”) (“non-GAAP financial measures.”) Please see the “Explanation of Non-GAAP Financial Measures” section of this press release and Table 1 for a reconciliation of net income (loss) to operating income. 2 Represents the non-economic fair value adjustments that are not expected to result in economic loss (“non-economic net unrealized fair value gains and losses”) related to credit derivatives, financial guaranty variable interest entities (“FG VIEs”) and committed capital securities (“CCS”). These non-economic changes in fair value represent the components of changes in fair value in excess of net expected loss that are expected to reverse to zero by contract maturity and are removed from net income to arrive at operating income. Financial Results Assured Guaranty also announced today its financial results for the three-month period ended March 31, 2012 (“first quarter 2012”).