RDN Radian Group Inc

Radian Asset Assurance Limited Assigned AA Rating from S&P; Subsidiary Acts as Springboard for International Growth LONDON, July 21 /PRNewswire-FirstCall/ -- Radian Asset Assurance Limited, a financial guaranty insurer and subsidiary of Radian Asset Assurance Inc., announced today that the company has received a AA rating from Standard & Poor's. This will better position Radian Asset Assurance Limited to continue to build its structured products business in the United Kingdom and throughout the European Union through the European passport system. The company received its authorisation from the Financial Services Authority (FSA) in August of last year. Standard & Poor's noted that, "the risk associated with Radian Asset Assurance Limited's financial guaranty business will be substantially reinsured with Radian Asset Assurance Inc." The rating has a negative outlook, mirroring the outlook of the parent company, Radian Asset Assurance Inc., which had $1.2 billion in statutory capital and $2.7 billion in claims-paying resources as of June 30, 2004. Radian Group Inc. (NYSE:RDN), Radian Asset Assurance Inc.'s parent company, headquartered in Philadelphia, selected London as its international base because it is a primary location for the rapidly growing structured products market and is ideally positioned for business opportunities across Europe. Radian Asset Assurance Limited's structured products business focuses on structured finance, credit and mortgage products, and other customized solutions to meet client demand. "Radian has dedicated itself to understanding the fundamentals of credit risk and developing products that can meet the myriad needs of our clients," said Andrew C. Poole, Managing Director of Radian Asset Assurance Limited. "We are delighted to have the S&P rating that will help us extend our secure and sophisticated risk management products to clients and build our business in the UK and European Union." Radian Group insures investment grade financial transactions with a variety of structures, creating products across a range of asset classes including asset-backed securities, collateralised debt obligations (CDOs) and bond insurance for the world's leading specialty finance companies, insurance companies and investment and commercial banks. "We have a long track record of innovation and risk expertise within the financial world and this knowledge and experience is used to tailor structured financial solutions to meet our clients' needs," added Frank P. Filipps, Chairman and Chief Executive Officer of Radian Group. "The London office represents a key platform in our international development and we look forward to building partnerships and advancing new market opportunities throughout Europe." In addition to the structured products and reinsurance operations, Radian Group is currently seeking approval from the FSA to launch a securities and investment firm (broker-dealer operation) in the UK to provide credit support to clients using credit default swaps. As of June 30, 2004, Radian Group had a market capitalization of $4.5 billion and assets of $6.5 billion. The company reported net income of $385.9 million for 2003 and $120.5 million for the second quarter of 2004. About Radian Group Inc.: Radian Group Inc. is a leading credit enhancement provider to the global financial and capital markets, headquartered in Philadelphia. Radian's subsidiaries provide products and services through three business lines: financial guaranty, mortgage insurance and other financial services. Additional information may be found at http://www.radiangroupinc.com/. About Radian Asset Assurance Limited: Radian Asset Assurance Limited is the UK-based subsidiary of Radian Asset Assurance Inc., a financial guaranty subsidiary of Radian Group Inc. (NYSE:RDN), a global credit enhancement company headquartered in Philadelphia. Radian Asset Assurance Limited, a writer of financial guarantees, structured products insurance and trade credit reinsurance, offers an array of insurance solutions including asset-backed securities, collateralised debt obligations and mortgage-backed securities. All statements in this press release that address operating performance, events or developments that we expect or anticipate may occur with respect to our international operations 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 are subject to risks and uncertainties including the following: downgrades of the insurance financial-strength ratings assigned by the major ratings agencies to Radian Asset Assurance Limited, particularly in light of the negative outlook associated with the existing rating; dependence on regulatory and third party approvals; challenges in attracting and retaining key foreign-based employees, customers and business partners in international markets; economic downturns in targeted foreign markets; interest rate volatility in a variety of countries; the burdens of complying with a wide variety of foreign regulations and laws, which may change unexpectedly; potentially adverse tax consequences; restrictions on the repatriation of earnings; foreign currency exchange rate fluctuations; and the need to develop and market products appropriate to the foreign market. Radian does not intend to and disclaims any duty or obligation to update or revise any forward-looking statements made in this press release to reflect new information or future events or for any other reason. DATASOURCE: Radian Asset Assurance Limited CONTACT: For the media: United Kingdom - Will Spiers, Manning Selvage and Lee, +44 (0) 207 878.3156 or , or United States - Emily Riley, Radian, +1-215-231-1328 or ; or For investors: Mona Zeehandelaar, Radian, +1-215-231-1674 or Web site: http://www.radiangroupinc.com/

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