RAM Holdings Ltd. Announces Q1 2011 Net Income Available to

HAMILTON, Bermuda – 21 June, 2011 - RAM Holdings Ltd. (the “Company”; BSX: RAMR.BH; Pink Sheets: RAMR.PK) today reported first quarter 2011 net income available to common shareholders of $6.0 million, or net income of $0.23 per diluted share. This compares to net income of $1.8 million, or net income of $0.07 per diluted share, for the first quarter 2010.

Commenting on the financial results, RAM’s Chief Executive Officer, David Steel, noted that, “Our first quarter net income was largely driven by the continued run off of our inforce portfolio of business, the increase in the realized and unrealized gains on our reinsured credit derivative portfolio, moderate loss development on our financial guaranty reinsurance exposures and the successful operating expense reduction efforts initiated over the last two years”.

Summary of Operating Results

Net income was $6.0 million for the quarter ended March 31, 2011.

The Company’s net income is calculated in conformity with U.S. generally accepted accounting principles (“GAAP”). RAM also provides information regarding its operating income (loss), a non-GAAP financial measure, because the Company’s management and Board of Directors, as well as many research analysts and investors, also evaluate financial performance on the basis of operating income (loss), which excludes nonoperating items such as realized investment gains or losses, unrealized gains or losses on credit derivatives and foreign currency gains or losses.

During the first quarter of 2011, operating income was $4.8 million, or $0.18 per diluted share, compared to an operating loss of $3.7 million, or a loss of $0.14 per diluted share,in the first quarter 2010.

Earned premiums in the first quarter 2011 of $4.4 million were 19% higher than the $3.7 million earned in the first quarter 2010. By eliminating accelerated premiums from refundings of $1.3 million from total earned premiums, core earned premiums in the first quarter 2011 were $3.1 million; this was 11% lower than the comparable 2010 period, which included accelerated premiums from refundings of $0.2 million. The decline in the first quarter 2011 earned premiums after refundings reflects the general run off of RAM’s business.

Net change in fair value of credit derivatives totaled a gain of $2.5 million in the first quarter 2011, which was $11.5 million more than the $9.0 million loss in the first quarter of 2010. Net change in fair value of credit derivatives for the first quarters of 2011 and 2010 were comprised of $1.0 million and $(7.5) million of unrealized gains (losses) on derivatives, respectively, and $1.5 million and $(1.5) million of realized gains (losses), respectively. The net unrealized gain in the first quarter 2011 was primarily attributable to: (i) the decrease in gross unrealized losses on credit derivative policies of $2.7 million, partially offset by (ii) the decrease in the adjustment for RAM’s own non-performance risk of $(1.7) million. The decrease in gross unrealized losses on credit derivative policies was primarily due to improvements in pricing across the majority of the portfolio. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 820 - “Fair Value Measurements and Disclosures” (“ASC 820”), RAM calculates an adjustment for its own non-performance risk. The effect of the ASC 820 requirement on RAM’s derivative liabilities on the balance sheet was a reduction of approximately $69.6 million at March 31, 2011.

Net investment income for the first quarter 2011 was $2.4 million, 25% below the $3.2 million recorded in the first quarter 2010. The decrease in investment income in the first quarter 2011 was primarily the result of a decrease in cash and invested assets of $35.6 million during 2010 due to payments associated with commutations and the repurchases of the Company’s unsecured senior notes (the “Notes”), a portion of the Company’s Series A preference shares (“Series A Preference Shares”) and a portion of the Class B preference shares (“Class B Preference Shares”) of RAM Reinsurance Company Ltd. (“RAM Re”), the operating subsidiary of the Company. The decrease in investment income was also due to a decline in the book yield from 3.7% as of March 31, 2010, to 3.2% as of March 31, 2011.

Realized gains on investments for the first quarter 2011 were $0.7 million compared to $0.4 million in realized gains for the same period in 2010.

A net gain on extinguishment of debt of $4.5 million was recognized on the repurchase of a portion of the Company’s Notes during the first quarter 2010. Gains of $11.5 million were recognized on the repurchase of 15,300 of the Company's Series A Preference Shares during the first quarter 2010. During the quarter ended March 31, 2011, there were no repurchase activities.

Losses and loss adjustment expenses were $0.4 million in the first quarter 2011, contributing to a loss ratio of 10%, compared to losses and loss adjustment expenses of $6.0 million and a loss ratio of 162% for the comparable 2010 period. The improvement in the 2011 loss ratio was attributable to an increase in representations and warranties repurchase credit on RAM's exposure to insured RMBS transactions as a result of the Assured Settlement described below. See “Subsequent Events” for further details of this settlement.

Acquisition expenses were $1.9 million in the first quarter of 2011 relative to $1.6 million for the comparable 2010 period. Acquisition expenses are closely related to earned premiums, and the increase in acquisition expenses for the first quarter 2011 as compared to the comparable 2010 period was also due to the increase in earned premiums in the period.

First quarter 2011 operating expenses of $1.9 million were $2.0 million, or 51%, below the level in the first quarter of 2010. The decrease in operating expenses for 2011 as compared to 2010 was primarily due to (i) reductions in staff made during May 2010 and (ii) expenses in 2010 relating to the repurchase of a portion of the Company’s Series A Preference Shares and Class B Preference Shares of RAM Re.

Balance Sheet

Total assets of $407.5 million at March 31, 2011 were $0.9 million, or 0.2%, below the level at December 31, 2010. This decrease was primarily related to the reduction in deferred policy acquisition costs due to the run off of RAM’s insured portfolio and was offset by the increase in RAM’s recoverable on paid losses. Shareholders' equity of $95.6 million was $4.8 million, or 5%, above the level at December 31, 2010, primarily due to net income earned in the first quarter 2011 offset by the decline in unrealized gains on investments. Book value per share was $3.62, an increase of 5% from year-end 2010.

Operating book value and adjusted operating book value per share, both of which are non-GAAP financial measures, were $5.80 and $9.28, respectively at March 31, 2011, an increase and decrease of 3% and (0.4)%, respectively, from year-end 2010.

Subsequent Events:

Effective April 15, 2011, RAM Re entered into a Settlement Agreement (the “Settlement Agreement”) with one of its ceding companies. The Settlement Agreement provided, among other things, for RAM Re to make a $2.3 million payment to commute the reinsurance with respect to certain policies written in credit derivative form, with par inforce as of December 31, 2010 of $129.8 million. Under the Settlement Agreement, each party was released from all liabilities and obligations under the commuted reinsurance.

The effect of this transaction will be recorded by the Company in the second quarter of 2011.

On April 15, 2011, Assured Guaranty Ltd. and its subsidiaries (“Assured”) announced that they had reached a settlement with Bank of America Corporation and its subsidiaries (the “Assured Settlement”) regarding their liabilities with respect to various RMBS transactions insured by Assured, including claims relating to reimbursement for breaches of representations and warranties (“R&W”). A number of the Company’s policies assumed from Assured are affected by this settlement. The Company has received sufficient information relating to the Assured Settlement that it now considers this to be a subsequent event that provides additional evidence about conditions that existed at March 31, 2011 and, as a result, the effects of this subsequent event must be recognized in the Company’s financial statements. Accordingly, the Company has

reflected updated assumptions and estimates in its unaudited interim financial statements for the three months ended March 31, 2011. For transactions covered under the Assured Settlement,the R&W benefit has been updated to reflect amounts collected and expected to be collected subsequent to March 31, 2011, under the terms of the Assured Settlement. On May 17, 2011, the Company received $19.9 million from Assured in relation to this settlement and anticipates it will receive the remaining payments (totaling approximately $6.1 million) by the middle of 2012.

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.

RAM will post its first quarter 2011 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.

RAM Re House

46 Reid Street

Hamilton, HM 12

Bermuda

Attention: David Steel

Telephone: 441-296-6501

Email: info@ramre.bm