RAM Holdings Ltd – Q1 2010 Earnings Release

HAMILTON, Bermuda – 30 June, 2010 - RAM Holdings Ltd. (BSX: RAMR.BH; Pink Sheets: RAMR; "RAM Holdings") reported first quarter 2010 net income available to common shareholders of $1.8 million, or net income of $0.07 per diluted share. This compares to a net loss of $1.9 million, or net loss of $0.07 per diluted share, for the first quarter 2009.

Summary of Operating Results

Net income was $1.8 million for the quarter ended March 31, 2010.

Earned premiums in the quarter of $3.7 million were 60% lower than the $9.2 million earned in the first quarter of 2009. By eliminating accelerated premiums from refundings of $0.2 million from total earned premiums, normal earned premiums in the first quarter 2010 were $3.5 million, 49% lower than the $6.9 million from the comparable 2009 period, net of accelerated premiums from refundings of $2.3 million. The decline in the first quarter 2010 earned premiums after refundings primarily reflects the reduction in ongoing earnings due to the commutation of treaties with three of our ceding companies during 2009.

Net change in fair value of credit derivatives totaled a loss of $9.0 million in the first quarter 2010, which was $21.9 million below the $12.9 million gain in the first quarter of 2009. Gross unrealized losses on credit derivative policies decreased in the first quarter 2010 primarily due to the narrowing of credit spreads in the market. This improvement in gross unrealized losses on credit derivatives was offset by the adjustment for RAM's own non-performance risk in accordance with fair value accounting standards. The effect of this adjustment for RAM's own non-performance risk was an increase in RAM's derivative liability of $21.1 million at March 31, 2010. The net change in fair value of credit derivatives for the first quarters of 2010 and 2009 were comprised of $(7.5) million and $12.0 million of unrealized gains (losses) on derivatives, respectively, and $(1.5) million and $0.9 million of realized gains (losses), respectively.

Net investment income for the first quarter 2010 was $3.2 million, 6% below the $3.4 million recorded in the first quarter of 2009. The decrease in investment income in the first quarter 2010 was primarily the result of a decrease in cash and invested assets due to payments on commutations in 2009 totaling $99.9 million, along with a decrease in the book yield on the invested assets from 3.9% to 3.6%. In addition, net investment income for the first quarter of 2009 was inclusive of $1.1 million in foreign exchange losses primarily on revaluation of the premiums receivable balance set up under FAS 163.

Net realized gains on investments for the first quarter 2010 were $0.4 million compared to the $4.5 million realized gains for the same period in 2009. Realized gains were offset by other-than-temporary impairment losses for the first quarter of 2010 of $6,185 compared to $4.1 million for the comparable 2009 period.

Net realized gains of $11.5 million and $4.5 million were recognized on the repurchase of 15,300 of RAM's Series A Preference Shares and $10.0 million of long-term debt, respectively, during the first quarter of 2010.

Loss and loss adjustment expenses were $6.0 million in the first quarter 2010. This was the result of adverse developments on RAM's exposure to insured transactions with residential mortgage-backed security ("RMBS") exposures, particularly from the 2006 and 2007 vintages. This compares to $16.7 million of incurred losses in the comparable 2009 period.

Acquisition expenses were $1.6 million in the first quarter of 2010 compared to $4.0 million for the comparable 2009 period. Acquisition expenses are closely related to earned premiums, and the decrease in acquisition expenses in the first quarter 2010 as compared to the comparable 2009 period was primarily due to the decrease in earned premiums in the period. First quarter 2010 operating expenses of $3.9 million were $1.3 million, or 25%, below the level in the first quarter of 2009. The decrease in operating expenses for 2010 as compared to 2009 was primarily due to the reduced operating costs associated with the withdrawal of RAM's ratings and the cancellation of our soft capital facilities in 2009.

Balance Sheet

Total assets of $444.2 million at March 31, 2010 were $13.6 million, or 3%, below the level at December 31, 2009; this decrease was primarily related to the reduction in invested assets due to the repurchases of the Series A Preference Shares, the Class B Preference Shares (of RAM Reinsurance Company Ltd., RAM's operating subsidiary ("RAM Re")) and the long term debt during the first quarter 2010. Shareholders' equity of $80.6 million was $4.8 million, or 6%, above the level at December 31, 2009, primarily due to the improvement in unrealized gains on investments together with net income earned in the first quarter 2010. Book value per share was $3.06, an increase of 6% from year-end 2009. Operating book value and adjusted operating book value per share, each of which are non-GAAP financial measures, were $4.77 and $8.88, respectively, at March 31, 2010, an increase of 14% and 4%, respectively, from year end 2009.

RAM has posted its first quarter 2010 financial results to its website at www.ramre.com under "Investor Information". If you are a shareholder of RAM Holdings Ltd. and wish to receive a hard copy of the financial statements by mail, please contact:

RAM Holdings Ltd.

David Steel                 441-298-2102

E-mail: info@ramre.bm

RAM Holdings Ltd. is a Bermuda-based holding company. Its operating subsidiary, RAM Reinsurance Company Ltd., provides financial guaranty reinsurance for U.S. and international public finance and structured finance transactions. More information can be found at www.ramre.com.