National Public Finance Guarantee Corporation Comments on its Exposure to the City of Detroit, Michigan

  National Public Finance Guarantee Corporation Comments on its Exposure to
  the City of Detroit, Michigan

Business Wire

ARMONK, N.Y. -- March 5, 2013

In response to investor inquiries, National Public Finance Guarantee
Corporation (National), an indirect subsidiary of MBIA Inc. (NYSE: MBI), today
confirmed that it has approximately $100.7 million of insured exposure to the
general obligation debt of the City of Detroit, Michigan. National has
additional exposures to various City of Detroit issues totaling $2.4 billion
that are secured by distinct revenue streams.

The following is a summary of National’s insured exposure as of December 31,
2012 to various bonds issued by the City of Detroit:

Issuer                                                       Exposure (Gross)
Detroit Unlimited Tax GO                                     $100,725,000
                                                            
General Obligation Exposure                                  $100,725,000
                                                            
City of Detroit Downtown Development Authority Tax
Increment Bonds                                              $70,980,000
(Development Area #1 Projects)
City of Detroit Downtown Development Authority Convention
Facility Special                                             $23,919,185
Tax Revenue Bonds (Cobo Hall Project)
City of Detroit Building Authority Revenue Bonds (Parking &  $9,970,000
Arena System)
City of Detroit Water Supply System Revenue Bonds            $1,084,452,482
City of Detroit Sewage Disposal System Revenue Bonds         $1,208,124,383
                                                            
Revenue Bond Exposure                                        $2,397,446,050
                                                            
Total City of Detroit Exposure                               $2,498,171,050
                                                            

“Should the City of Detroit fail to make a required debt service payment for
any reason, including a bankruptcy filing, National’s insured bondholders are
guaranteed their scheduled interest and principal payments on time and in
full,” said Adam Bergonzi, National’s Chief Risk Officer. “National will
continue to monitor the situation closely in the coming months as the city and
state work to resolve Detroit’s fiscal crisis.”

Copies of the relevant policyholder documentation as well as a comprehensive
listing of National’s insured portfolio can be found on National’s website at
www.nationalpfg.com.

National, headquartered in Armonk, New York, is the world’s largest U.S.
public finance-only financial guarantee insurance company.

Forward-Looking Statements

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. These risks
and uncertainties could affect financial performance or could cause actual
results to differ materially from estimates contained in or underlying MBIA
Inc.’s or National’s forward-looking statements. These risks and uncertainties
are discussed under the “Risk Factors” section in MBIA Inc.’s most recent
Annual Report on Form 10-K, which may be updated or amended in MBIA Inc.’s
subsequent filings with the Securities and Exchange Commission. MBIA Inc. and
National caution readers not to place undue reliance on any such
forward-looking statements, which speak only to their respective dates.
National and MBIA Inc. undertake 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.

Contact:

National Public Finance Guarantee Corporation
Media:
Kevin Brown, 914-765-3648
or
Investor Relations:
Nick Sourbis, 914-765-3385
 
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