National Takes Action to Extend PREPA Restructuring Support Agreement

Title III Bankruptcy Filing Unnecessary and Improper and Puts
Commonwealth at Risk; PREPA RSA has Broad Creditor Support

National to Continue Pursuing Lawsuit to Compel Oversight Board to
Comply with Obligations Under PROMESA

PURCHASE, N.Y.–(BUSINESS WIRE)–National Public Finance Guarantee Corporation (National), an indirect
subsidiary of MBIA Inc. (NYSE:MBI), today announced that it and the
other supporting creditors offered the Puerto Rico Electric Power
Authority (“PREPA”) an extension of the Restructuring Support Agreement
(“RSA”) until June 30, 2017 that included a re-lending that would have
allowed PREPA to avoid a default on July 1, 2017. The offer was
delivered to Puerto Rico Governor Ricardo Rosselló, PREPA and the Puerto
Rico Fiscal Agency & Financial Advisory Authority (”AAFAF”), but all
have refused to sign the extension.

National believes this extension and the related funding would have
provided additional time for discussions to avoid a Title III bankruptcy
filing by PREPA, which National also believes is unnecessary and
improper and would put the Commonwealth at risk by disrupting the
provision of electricity on the island.

“PREPA and the Rosselló administration have rejected the only lifeline
available on the island,” said Bill Fallon, CEO of National Public
Finance Guarantee Corporation. “They are bending to the will of the
Oversight Board. The RSA has broad creditor support and has been
approved by all required parties, including two governors, the Puerto
Rico legislature, AAFAF, the Puerto Rico Energy Commission and the PREPA
board. The Governor should stand by his agreement that we achieved
almost two months ago.”

National will continue to pursue its lawsuit in the U.S. District Court
for the District of Puerto Rico that seeks to compel the Oversight Board
to comply with its obligations under the Puerto Rico Oversight,
Management, and Economic Stability Act.

National has adequate resources, with claims-paying resources totaling
$4.6 billion at March 31, 2017, to ensure that its policyholders will
receive the full amount of the scheduled interest and principal payments
that come due on their National insured bonds.

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,”
“estimate,” “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
factors, the possibility that MBIA Inc. or National will experience
increased credit losses or impairments on public finance obligations
issued by state, local and territorial governments and finance
authorities that are experiencing unprecedented fiscal stress; the
possibility that loss reserve estimates are not adequate to cover
potential claims; MBIA Inc.’s or National’s ability to fully implement
their strategic plan; 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 MBIA Inc.’s or National’s
forward-looking statements 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.

National Public Finance Guarantee Corporation, headquartered in
Purchase, New York is the world’s largest U.S. public finance-only
financial guarantee insurance company, with offices in New York and San
Francisco. Please visit National’s website at www.nationalpfg.com.

Contacts

National Public Finance Guarantee Corporation
Media:
Greg
Diamond, 914-765-3190
or
Fixed-Income Investor Relations:
Kevin
Brown, 914-765-3385
or
MBIA Inc.
Investor and
Media Relations:
Greg Diamond, 914-765-3190