Clinton Group Calls Upon Radian Group to Provide Enhanced Disclosure to Public Shareholders or to Sell Company to Knowledgeable Buyer

NEW YORK, May 21, 2012 /PRNewswire/ -- Clinton Group, Inc. ("Clinton") today announced that it has sent a letter to the Board of Directors ("Board") of Radian Group, Inc. (NYSE: RDN) ("Radian" or the "Company") urging the Company to release detailed information about its legacy mortgage insurance and financial guarantee books or, in the alternative, to provide such information to private equity firms and strategic buyers in order to elicit a bid for the Company.

In its letter, copied below, Clinton's Chief Executive Officer encouraged the Company to give shareholders sufficient historical and current data about its exposures to allow shareholders to perform their own calculations of the potential liabilities of the company.

"We believe Radian has a tremendous franchise and an opportunity to retain its leadership position in the mortgage insurance market for great future profit," Clinton said in its letter. "However, our fellow shareholders appear to be skeptical that the Company has sufficient reserves against future claims and are worried about the magnitude of future defaults." The letter notes that, "The best antidote to such skepticism and worries is sunlight."

Clinton noted that to the extent shareholder concerns cannot be allayed by more complete disclosure, the best approach for creating shareholder value is to sell Radian to a buyer that has the expertise to fully understand and properly value the legacy book and future business opportunities. Clinton noted that it is aware of one former industry executive who has expressed serious interest in acquiring Radian at a price significantly above its current trading level.

About Clinton Group, Inc.

Clinton Group, Inc. is a diversified asset management firm with approximately $2.7 billion in assets under management. The firm has been investing in global markets since its inception in 1991 with expertise that spans a wide range of investment styles and asset classes. Clinton has been investing in mortgages and mortgage-related debt and equity securities since its formation. Clinton Group is a Registered Investment Advisor based in New York City.

Clinton Group, Inc.
9 West 57th Street, 26th Floor
New York, NY  10019

May 21, 2012

Mr. Herbert Wender
Chairman
Radian Group, Inc.
1601 Market Street
Philadelphia, Pennsylvania 19103

                Re: Protecting Shareholder Interests

Dear Mr. Wender:

As you know, Clinton Group, Inc. and its affiliates ("Clinton") are the investment manager for several funds that own significant amounts of Radian Group, Inc. ("Radian" or the "Company") stock. Based on publicly available information, we believe we are one of the Company's largest owners.

We believe Radian has a tremendous franchise and an opportunity to retain its leadership position in the mortgage insurance market for great future profit. However, our fellow shareholders appear to be skeptical that the Company has sufficient reserves against future claims and are worried about the magnitude of future defaults. Rightly or wrongly, shareholders are apparently unwilling to accept the projections and reserve calculations provided to date by management.

The best antidote to such skepticism and worries is sunlight.

We therefore request that the Company make available detailed information on each of the mortgages and financial instruments to which it has exposure. The Company should also release detailed information on its historical default, claim, rescission and denial experience. This level of transparency will help investors correctly value the business.  Let investors have the underlying information so that they can perform their own math and reach their own conclusions, rather than allowing unending speculation and unfounded concerns drive the stock out of the hands of your fundamental, long-term investors.

We recognize that even with this enhanced disclosure, it may still be challenging to convince thousands of public market investors of Radian's true future prospects. Public market investors are not experts in the intricacies of insurance accounting, may not have the time or resources to process the information, and are prone to being spooked by risks that are hard to quantify and which others have highlighted.

The alternative, of which we are also supportive, is for the Company to embark on a sale process designed to elicit an informed bid for the entire Company. We believe there are many firms eager to engage in such a dialogue with Radian, and are aware of at least one accomplished industry executive that has expressed a strong desire to acquire the Company even at a price significantly above its current trading level. These potential buyers can devote the resources, and have the expertise, to fully examine the Company's legacy book and evaluate Radian's future prospects. We have confidence that a well-run, competitive process will garner a fair price for the Company's shareholders.

We know of no reason why the Board and management team should sit idle while shareholders fret about the value of the Company and those with a bearish view prevail in the market. Instead, as our fiduciaries, you should act decisively to dispel any misinformation or mysteries about the legacy book and prospects for the business, or sell the Company to someone who will provide fair value.

I would be pleased to discuss our views further. You can reach me, as always, at 212-825-0400.

Best regards.

//s//

George E. Hall
Chief Executive Officer

cc:           Board of Directors, Radian Group, Inc.

SOURCE Clinton Group, Inc.