Lieff, Cabraser, Heimann & Bernstein, LLP Announces the Filing of a Class Action Lawsuit Against MBIA, Inc. SAN FRANCISCO, May 2 /PRNewswire/ -- The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired publicly traded shares of MBIA, Inc. ("MBIA") between August 5, 2003 and March 30, 2005. Shares of MBIA common stock trade on the New York Stock Exchange under the symbol "MBI." On November 18, 2004, MBIA announced that it had received subpoenas from the Securities and Exchange Commission ("SEC") and the New York Attorney General's Office ("NYAG") requesting information with respect to non-traditional or loss mitigation insurance products developed, offered or sold by MBIA to third parties from January 1, 1998 to the present. On March 8, 2005, MBIA announced that it had decided to restate its financial statements for 1998 through 2003 to correct the accounting treatment for two reinsurance agreements that MBIA entered into in 1998 with Zurich Reinsurance North America, which later was re-named Converium Re upon its divesture by Zurich Financial Services in 2001. The restated transactions overstated net income by $54 million during the period 1998 through 2003 by failing to record a loss related to MBIA's insurance of bonds issued by the Allegheny Health, Education and Research Foundation ("Allegheny"). On March 9, 2005, MBIA announced that the U.S. Attorney's Office for the Southern District of New York was conducting its own investigation into losses suffered by MBIA as a result of its insurance of the Allegheny bonds. On March 30, 2005, the SEC and NYAG supplemented the November 2004 subpoenas with requests for documents related to MBIA's accounting treatment of advisory fees, its methodology for determining loss reserves and case reserves, instances of purchase of credit default protection in itself, and documents relating to Channel Reinsurance Ltd. ("Channel Re"), a reinsurance company launched in 2004 by MBIA, PartnerRe Ltd., RenaissanceRe Holdings Ltd., and Koch Financial Corporation. On April 8, 2005, PartnerRe Ltd. and RenaissanceRe Holdings Ltd. announced that they had received subpoenas from the SEC and NYAG seeking information relating to Channel Re. News of these events have caused MBIA's common stock price to drop from a class period high of $67.34 on March 3, 2004 to $52.28 on March 31, 2005, one day after MBIA announced that the SEC and NYAG had supplemented the subpoenas served on MBIA in November 2004. This decline in stock price represents a $2.0 billion reduction of MBIA's market capitalization from its high point in the class period. Shares of MBIA closed at $52.95 per share on April 25, 2005. Note: MBIA Shareholders contact Bruce W. Leppla, Esq., 275 Battery Street, 30th Floor, San Francisco, CA 94111, 415-956-1000, ext. 3381, for more details or visit http://www.lieffcabrasersecurities.com/ . Lieff Cabraser Heimann & Bernstein, LLP is a national law firm of over 60 lawyers with offices in San Francisco, New York, Washington, D.C., Beverly Hills/Los Angeles and Nashville. Our attorneys are recognized for the successful prosecution of lawsuits involving violations of the federal securities laws by major corporations and their directors and officers. For more detailed information about Lieff, Cabraser, Heimann & Bernstein, LLP, please visit our website at http://www.lieffcabrasersecurities.com/ . DATASOURCE: Lieff, Cabraser, Heimann & Bernstein, LLP CONTACT: investors, Bruce W. Leppla, Esq. of MBIA, +1-415-956-1000, ext. 3381, or Web site: http://www.lieffcabrasersecurities.com/ Web site: http://www.lieffcabraser.com/

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