“WHAT’S NEW”

Radian Implements Mortgage Insurance Capital Plan

Internal Restructuring Provides Mortgage Insurance Business with Significant Additional Statutory Surplus
Sherman Stake Increases to 29%

PHILADELPHIA, Sept. 18 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE: RDN), today announced the completion of the primary component of its capital plan, providing non-dilutive capital support to its mortgage insurance business. Radian has contributed its ownership interest in Radian Asset Assurance Inc. (Radian Asset), its principal financial guaranty subsidiary, to Radian Guaranty, the Company's principal mortgage insurance subsidiary.

"We reiterate our commitment to our mortgage insurance business with the contribution of a company with $960 million in statutory surplus, which is part of approximately $3 billion of claims-paying resources," stated S.A. Ibrahim, Chief Executive Officer of Radian Group. "Our mortgage insurance business remains our primary focus and we believe the contribution of Radian Asset will provide a substantial amount of capital over time. The strength of this internally-sourced capital plan differentiates us within the industry and best positions us for the long term."

Radian's ownership interest in Sherman Financial recently increased to approximately 29 percent from 22 percent. Radian expects Sherman to continue to provide it with a meaningful dividend contribution and to serve as a potential source of additional capital. Radian received $19.5 million in dividends from Sherman in the first half of 2008.

To allow for this transfer, Radian completed the previously announced amendment to its credit facility, reducing the outstanding amount and commitment size of the facility to $150 million.

About Radian
Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in credit-based consumer asset businesses. Additional information may be found at www.radian.biz.

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