New York State Supreme Court Upholds MBIA’s Transformation

  New York State Supreme Court Upholds MBIA’s Transformation

Business Wire

ARMONK, N.Y. -- March 4, 2013

MBIA Inc. (NYSE: MBI) (the Company) today announced that the New York State
Supreme Court has upheld the New York State Insurance Department’s (now the
Department of Financial Services) decision to approve MBIA’s Transformation in
February of 2009, which came after the Department’s thorough and careful
analysis. Initially, a group of 18 banks challenged the approval in an Article
78 proceeding, although by the commencement of hearings before the Court, just
two banks remained. In its 59-page, thorough and well-reasoned decision, the
Court rejected each of the banks’ arguments that the Department’s approval of
Transformation was either arbitrary and capricious, or contrary to law.

“After almost four years of court filings, discovery and hearings, we are
pleased that the New York State Supreme Court has affirmed what was obvious
all along – that the New York State Insurance Department’s approval of our
Transformation was proper in all respects,” said Jay Brown, MBIA CEO. “With
the Court’s ruling now in hand, we look forward to resolving the remainder of
our litigation so that we can support the financing needs of towns and cities
across America by re-establishing National Public Finance Guarantee
Corporation, our U.S. muni-only insurer, as a leader in the U.S. public
finance insurance market.”

Forward-Looking Statements

The information contained in this press release should be read in conjunction
with our filings made with the Securities and Exchange Commission. This
release includes statements that are not historical or current facts and are
“forward-looking statements” made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The words “believe,”
“anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,”
“looking forward” or “will continue,” and similar expressions identify
forward-looking statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected, including,
among other risks and uncertainties, whether the Company will realize, or will
be delayed in realizing, insurance loss recoveries expected in disputes with
sellers/servicers of RMBS transactions at the levels recorded in its financial
statements, the possibility that the Company will experience severe losses or
liquidity needs due to increased deterioration in its insurance portfolios and
in particular, due to the performance of CDOs including multi-sector, CMBS and
CRE CDOs and RMBS, the failure to obtain regulatory approval to implement our
risk reduction and liquidity strategies, the possibility that loss reserve
estimates are not adequate to cover potential claims, the risk that MBIA
Insurance Corporation will be placed in a rehabilitation or liquidation
proceeding by the NYSDFS, the Company’s ability to access capital and the
Company’s exposure to significant fluctuations in liquidity and asset values
within the global credit markets, in particular in the ALM business, the
Company’s ability to fully implement its strategic plan, including its ability
to achieve high stable ratings for National or any other insurance
subsidiaries, and the Company’s ability to commute certain of its insured
exposures, including as a result of limited available liquidity, the Company’s
ability to favorably resolve litigation claims against the Company, and
changes in general economic and competitive conditions. These and other
factors that could affect financial performance or could cause actual results
to differ materially from estimates contained in or underlying the Company’s
forward-looking statements are discussed under the “Risk Factors” section in
MBIA Inc.’s most recent Annual Report on Form 10-K and Quarterly Report on
Form 10-Q, which may be updated or amended in the Company’s subsequent filings
with the Securities and Exchange Commission. The Company cautions readers not
to place undue reliance on any such forward-looking statements, which speak
only to their respective dates. The Company undertakes no obligation to
publicly correct or update any forward-looking statement if it later becomes
aware that such result is not likely to be achieved.

MBIA Inc., headquartered in Armonk, New York is a holding company whose
subsidiaries provide financial guarantee insurance, as well as related
reinsurance, advisory and portfolio services, for the public and structured
finance markets, and asset management advisory services. The Company services
its clients around the globe with offices in New York, Denver, San Francisco,
Paris, London, Madrid and Mexico City. Please visit MBIA's website at
www.mbia.com.

Contact:

MBIA Inc.
Media:
Kevin Brown, +1-914-765-3648
or
Investor Relations:
Greg Diamond +1-914-765-3190