RDN Radian Group Inc

New Intellectual Capital and Financial Strength Rating Position Radian Europe for International Growth LONDON, Dec. 7 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE:RDN), a global credit risk management company, today announced two key achievements against its strategy for disciplined growth in the U.K. and Europe. The company announced three appointments within its newest mortgage credit enhancement subsidiary, Radian Europe Limited, and noted it had earned a AA insurer financial strength rating from Fitch Ratings. "We are very pleased with the progress we are making and believe our investments in people, products and technology position us well to maximize future opportunities in key European markets," said Jeff Cashmer, Radian's senior vice president, International Mortgage. "Fitch's AA rating, which follows a AA stable rating by Standard and Poor's in July, is an important validation of our disciplined growth plan." The company's goal is to leverage its strength and capabilities in the U.S., thus generating prudent growth in European markets, and to achieve a meaningful and diversified earnings contribution from international activities in three to five years. Key Appointments Mini Radhakrishnan has been promoted to vice president, Structured Transactions and Business Development. Ms. Radhakrishnan joined Radian in 1999, and worked in various risk analytics, capital markets and credit roles before joining the International Mortgage group in 2003. She earned an MBA from Drexel University in Management Information Systems and International Business, and an MBA in Finance from the University of Bombay, India. George Tzigiannis has been promoted to vice president, Structured Transactions and Business Development. Mr. Tzigiannis joined Radian in 2004 in the Capital Markets group, where he was responsible for structured mortgage insurance pricing. Before joining Radian, he was an assistant vice president of Secondary Marketing at Chase Home Finance. Mary Boyle has joined Radian as vice president, Risk Management for European Mortgage Markets. Her responsibilities include managing mortgage risk and overseeing all risk management processes in the United Kingdom and European Union, as well as oversight of risk assessment for new market and business development. Ms. Boyle joins Radian from GE Asset Management, where she held positions in credit analysis and research. Fitch Rating Radian Europe received a AA insurer financial strength rating from Fitch Ratings. In its report, Fitch noted that the rating reflects operational and capital support from Radian's parent companies and subsidiaries, and takes into account the strategic importance of the European market to the group as well as a good initial standalone capitalization. About Radian Group Inc. Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in both New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in active credit-based consumer asset businesses. Additional information may be found at http://www.radian.biz/. All statements made in this news release that address events or developments that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. The forward-looking statements, as well as Radian's prospects as a whole, are subject to risks and uncertainties, including the following: changes in general financial and political conditions such as extended national or regional economic recessions (or expansions), changes in housing values, population trends and changes in household formation patterns, changes in unemployment rates, and changes or volatility in interest rates; changes in investor perception of the strength of private mortgage insurers or financial guaranty providers, and risks faced by the businesses, municipalities or pools of assets covered by Radian's insurance; the loss of a customer with whom Radian has a concentration of its insurance in force; increased severity or frequency of losses associated with certain Radian products that are riskier than traditional mortgage insurance and municipal guaranty insurance policies; material changes in persistency rates of Radian's mortgage insurance policies; downgrades of Radian's credit ratings or the insurance financial-strength ratings assigned by the major ratings agencies to Radian's operating subsidiaries; heightened competition from other insurance providers and from alternative products to private mortgage insurance and financial guaranty insurance; changes in the charters or business practices of Fannie Mae and Freddie Mac; the application of federal or state consumer- lending, insurance and other applicable laws and regulations, or unfavorable changes in these laws and regulations or the way they are interpreted, including: (i) the possibility of private lawsuits or investigations by state insurance departments and state attorneys general alleging that services offered by the mortgage insurance industry, such as captive reinsurance, pool insurance and contract underwriting, are violative of the Real Estate Settlement Procedures Act and/or similar state regulations (particularly in light of public reports that some state insurance departments are investigating captive reinsurance arrangements used in the mortgage insurance industry), or (ii) legislative and regulatory changes affecting demand for private mortgage insurance or financial guaranty insurance; the possibility that we may fail to estimate accurately the likelihood, magnitude and timing of losses in connection with establishing loss reserves for our mortgage insurance or financial guaranty businesses or to estimate accurately the fair value amounts of derivative financial guaranty contracts in determining gains and losses on these contracts; changes in accounting guidance from the SEC or the Financial Accounting Standards Board regarding income recognition and the treatment of loss reserves in the mortgage insurance or financial guaranty industries; changes in claims against mortgage insurance products resulting from the aging of Radian's mortgage insurance policies; vulnerability to the performance of Radian's strategic investments; changes in the availability of affordable or adequate reinsurance for our non-prime risk; and international expansion of our mortgage insurance and financial guaranty businesses into new markets and risks associated with our international business activities. For more information regarding these risks and uncertainties, as well as certain additional risks that we face, investors should refer to the risk factors detailed in Part I, Item 1A in our annual report on Form 10-K for the year ended December 31, 2005. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date of this news release. Radian does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements made in this news release to reflect new information, future events or for any other reason. DATASOURCE: Radian Group Inc. CONTACT: For investors: Mona Zeehandelaar, +1-215-231-1674, email: ; or For the media: Corporate Communications, +1-215-231-1990, email: , both of Radian Group Web site: http://www.radian.biz/

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