Press Release Details

ARMONK, N.Y.--(BUSINESS WIRE)--

MBIA Inc. (NYSE: MBI) today announced that its Board of Directors voted to eliminate the quarterly dividend. The elimination of the dividend will preserve approximately $174 million on an annualized basis, which is the amount that the Company paid out in dividends in 2007. This action was taken at the recommendation of Jay Brown, as the Company's new Chairman and Chief Executive Officer, to further strengthen the Company's financial resources and to increase its operating flexibility. The dividend was most recently reduced on January 9, 2008 to 13 cents, although no dividends were paid out at that rate. Additionally, the Board voted to move to an annual dividend evaluation in the first quarter of each year.

"MBIA will continue to take reasonable and prudent actions such as this dividend elimination in an effort to retain and strengthen our Triple-A ratings," said Mr. Brown. "As a very large individual shareholder of MBIA, I'm the first one to feel the pinch from this action. But I think this, coupled with my recent commitment to buy a substantial number of additional shares, demonstrates my absolute commitment to be aligned with our owners and to maximize long-term value."

MBIA Inc., through its subsidiaries, is a leading financial guarantor and provider of specialized financial services. MBIA's innovative and cost-effective products and services meet the credit enhancement, financial and investment needs of its public and private sector clients, domestically and internationally. MBIA Inc.'s principal operating subsidiary, MBIA Insurance Corporation, has the following financial strength ratings: Triple-A from Fitch Ratings with ratings on Rating Watch Negative; Triple-A with a negative outlook from Standard & Poor's Ratings Services; and Triple-A on review for possible downgrade from Moody's Investors Service. Please visit MBIA's Web site at www.mbia.com.

Source: MBIA Inc.