Exhibit 99.1


    MBIA and Royal Indemnity Company Agree to Settle SFC Related Litigation


ARMONK, N.Y.--(BUSINESS WIRE)--MBIA Inc. (NYSE:MBI) announced that its wholly
owned subsidiary, MBIA Insurance Corporation (MBIA Corp.), has reached an
agreement with Royal Indemnity Company (Royal) to settle its outstanding
litigation against Royal related to Student Finance Corporation (SFC). In July
2002, MBIA Corp., together with Wells Fargo Bank N.A. in its capacity as
trustee, filed suit in Delaware federal district court against Royal to enforce
insurance policies that Royal issued guaranteeing vocational loans originated by
SFC. MBIA Corp. insured eight securitizations that were collateralized by the
SFC vocational student loans guaranteed by Royal.


MBIA General Counsel Ram Wertheim said, "We are pleased to resolve this
longstanding matter and to eliminate the additional expense and risks associated
with further litigation." The amount payable by Royal under the terms of the
settlement will be sufficient to repay the approximately $362 million of
outstanding par amount of the bonds insured by MBIA as well as to reimburse MBIA
for a portion of the claims that MBIA has paid to date under its insurance
policies. As a result of the settlement, MBIA will incur approximately $20
million in losses in the first quarter. The loss represents a reduction to
MBIA's expected recoveries for claims it has paid to date under its policies and
will be covered by the Company's unallocated loss reserves.


The District Court in Delaware has entered a final judgment in the case
implementing the settlement.

MBIA Inc. (NYSE: MBI), 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 a financial strength rating of Triple-A from Moody's Investors
Service, Standard & Poor's Ratings Services, Fitch Ratings, and Rating and
Investment Information, Inc. MBIA has offices in London, Madrid, Milan, New
York, Paris, San Francisco, Sydney and Tokyo. Please visit MBIA's Web site at
http://www.mbia.com




Contacts
MBIA Inc.
Michael Ballinger, 914-765-3893