RDN Radian Group Inc

New Radian Company Targets Structured Credit Derivatives Market New Onshore Broker-Dealer Platform Enables Radian to Boost Its Structured Products Business LONDON, Sept. 9 /PRNewswire-FirstCall/ -- The Financial Services Authority (FSA) has granted a license to Radian Financial Products Limited to trade as a Category A Securities and Futures Firm, allowing the company to develop a range of derivatives-based solutions for clients in the United Kingdom and throughout the EU. Transactions undertaken by Radian Financial Products, such as collateralised debt obligations (CDOs) and credit default swaps, will be guaranteed by Radian Asset Assurance Limited, Radian's UK-based insurance company which was recently assigned a AA rating by both Fitch Ratings and Standard & Poor's. Radian Asset Assurance Limited is an indirect subsidiary of Radian Group Inc. (NYSE:RDN), a global credit enhancement company headquartered in Philadelphia. "The global credit derivatives market continues to grow rapidly, particularly in London, and the launch of Radian Financial Products is timed to position the company as a major player in this market," said Andrew Reid, Managing Director of Radian Financial Products Limited. "Radian will be able to develop creative and tailored solutions for its European clients in both derivative and financial guarantee form. Our FSA license means that Radian Financial Products will be treated as a bank for capital weighting purposes, so our clients will gain regulatory capital relief and can attract a lower capital allocation for managing their own risk." It is estimated that the value of transactions in the European credit derivatives market could reach $4.8 trillion by the end of 2004(1). With a capital base of $45.0 million, Radian Financial Products is targeting a share of this market by offering financial transactions with a variety of structures, creating products across a range of asset classes such as commercial and retail mortgage-backed securities, credit card, auto loan, trade and other receivables. "We are delighted at the launch of Radian Financial Products, which means that we can offer the broadest form of execution required by our clients," added Andrew Poole, Managing Director of Radian Asset Assurance Limited and Radian's UK operations. "We have a very successful track record in developing complex financial risk structures and look forward to building this business in the UK and EU." Radian Financial Products will tailor solutions for clients on an individual basis including asset-backed securities, CDOs and credit default swaps for the world's leading specialty finance companies, insurance companies and investment and commercial banks. The company will also offer credit enhancement for institutions such as exchanges and clearing houses. 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. (1) The global market in credit derivatives is expected to rise to $4.8 trillion by 2004 according to a report published by the British Bankers' Association (BBA) in September 2002. Notes to editors: About Radian Group Inc.: 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 $240.5 million for the first six months of 2004. Radian Group Inc. (NYSE:RDN) 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. DATASOURCE: Radian Financial Products 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 ; For investors: Mona Zeehandelaar, Radian, +1-215-231-1674 or Web site: http://www.radiangroupinc.com/

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