Assured Guaranty Ltd. Announces Exercise of Overallotment Options in Common Share and Equity Unit Offerings

In the common share offering the underwriters have exercised their overallotment option to purchase an additional 5,775,000 common shares, bringing the total number of common shares to be sold by Assured to 44,275,000, or approximately $487.0 million in the aggregate. The additional common shares will be sold at the same $11.00 public offering price as the original common shares.

In the equity unit offering the underwriters have exercised their overallotment option to purchase an additional 450,000 equity units, bringing the total number of equity units to be sold by Assured to 3,450,000, or approximately $172.5 million in the aggregate. The additional equity units will be sold at the same $50 public offering price, and have the same terms, as the original equity units.

Assured intends to use the net proceeds from the exercise of the overallotment options, approximately $82.5 million (after deducting underwriting discounts and commission but before expenses of the offerings), for general corporate purposes.

The exercises of the overallotment options are expected to close at the same time as the closings of the common share and equity unit offerings on June 24, 2009. As previously announced, the acquisition of Financial Security Assurance Holdings, Ltd. is expected to close on July 1, 2009.

Merrill Lynch & Co. and Deutsche Bank Securities Inc. are acting as joint book-running managers for the common share offering and Merrill Lynch & Co. is acting as sole book-running manager for the equity unit offering.

The offerings are being made only by means of a prospectus supplement and accompanying prospectus. Assured has filed a registration statement (including a prospectus and related prospectus supplements for each of the common share and equity unit offerings) with the U.S. Securities and Exchange Commission (SEC) for the offerings to which this communication relates. Before you invest, you should read the applicable prospectus supplement and the accompanying prospectus for more complete information about Assured and these offerings. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from Merrill Lynch & Co., Attention: Prospectus Department, 4 World Financial Center, New York, NY 10080 (1-212-449-1000) (with respect to the common share and equity unit offerings) or Deutsche Bank Securities Inc., 100 Plaza One, Second Floor, Jersey City, NJ 07311, (1-800-503-4611) (with respect to the common share offering).

This press release does not constitute an offer to sell or the solicitation of an offer to buy any common shares or equity units, nor will there be any sale of common shares or equity units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Assured Guaranty Ltd. is a Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, structured finance and mortgage markets.

Any forward-looking statements made in this press release reflect Assured's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. For example, Assured's forward-looking statements, including its statements regarding the FSA closing, could be affected by a significant reduction in the amount of reinsurance ceded by one or more of our principal ceding companies, rating agency action such as a ratings downgrade, difficulties with the execution of Assured's business strategy, contract cancellations, developments in the world's financial and capital markets, more severe or frequent losses associated with products affecting the adequacy of Assured's loss reserve impact of market volatility on the marking to market on our contract written in credit default swap form, changes in regulation or tax laws, governmental actions, natural catastrophes, Assured's dependence on customers, decreased demand or increased competition, loss of key personnel, technological developments, the effects of mergers, acquisitions and divestitures, changes in accounting policies or practices, changes in general economic conditions, other risks and uncertainties that have not been identified at this time, management's response to these factors, and other risk factors identified in Assured's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. Assured undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Assured Guaranty Ltd.

Assured Guaranty Ltd. 
Investors: 
Sabra Purtill, Managing Director, 
Global Communications and Investor Relations 
212-408-6044 or 441-299-9375 
spurtill@assuredguaranty.com 
OR 
Ross Aron 
Associate, Investor Relations, 212-261-5509 
raron@assuredguaranty.com 
OR 
Media: 
Ashweeta Durani, Vice President, Global Communications 
212-408-6042 or 917-597-2065 
adurani@assuredguaranty.com