FREMONT GENERAL ANNOUNCES SIGNIFICANT DEVELOPMENTS
| • | Completion of the sale of the Company’s commercial real estate lending business and outstanding commercial real estate loan portfolio to iStar Financial Inc. |
| • | Appointment of Alan W. Faigin as interim President and Chief Executive Officer of Fremont Investment & Loan |
(SANTA MONICA, CALIFORNIA) – July 2, 2007: Fremont General Corporation (the “Company”) (NYSE: FMT), doing business primarily through its wholly-owned industrial bank, Fremont Investment & Loan (the “Bank”), today announced the completion of the previously announced sale of the Company’s commercial real estate lending business and outstanding commercial real estate loan portfolio to iStar Financial Inc.
The Company also announced that effective June 29, 2007, Alan W. Faigin, the Company’s Secretary, General Counsel and Chief Legal Officer, was appointed interim President and Chief Executive Officer of the Bank, replacing Kyle R. Walker. It is expected that Mr. Faigin will serve in this position until he is succeeded by Carl B. Webb. Mr. Webb is expected to become President and Chief Executive Officer of the Bank upon the receipt of regulatory approval of the proposed minority investment in the Company by an investor group led by Gerald J. Ford, as previously announced by the Company on May 22, 2007.
In connection with the proposed minority investment transaction, a proxy statement relating to certain of the matters discussed in this news release is expected to be filed with the SEC. When filed, copies of the proxy statement and other related documents may be obtained free of charge on the SEC website (www.sec.gov). THE COMPANY’S STOCKHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. The Company, its directors, executive officers and certain members of management and employees may be considered “participants in the solicitation” of proxies from the Company’s stockholders in connection with certain of the matters discussed in this news release. Information regarding such persons and their interests in the Company is contained in the Company’s proxy statements and annual reports on Form 10-K filed with the SEC. Stockholders and investors may obtain additional information regarding the interests of the Company and its directors and executive officers in the matters discussed in this news release, which may be different than those of the Company’s stockholders generally, by reading the proxy statement and other relevant documents regarding the matters discussed in this news release, which are expected to be filed with the SEC.
Regulatory Filings
The Company’s periodic reports as filed with the SEC can be accessed atwww.fremontgeneral.com and on the EDGAR section of the SEC’s website atwww.sec.gov.
About iStar Financial Inc.
iStar is a leading publicly traded finance company focused on the commercial real estate industry. iStar primarily provides custom-tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. iStar, which is taxed as a real estate investment trust, seeks to deliver strong dividends and superior risk-adjusted returns on equity to its stockholders by providing innovative and value added financing solutions to its customers.
About Gerald J. Ford
Over the past 30 years, Gerald J. Ford has acquired, consolidated and sold more than 40 financial institutions and financial services companies, including mortgage lenders and depository institutions. Mr. Ford was Chairman and Chief Executive Officer of Golden State Bancorp Inc. from 1994 through 2002 when the company was sold to Citigroup for $5.8 billion. Carl B. Webb served as President and Chief Operating Officer and J. Randy Staff served as Executive Vice President and Chief Financial Advisor of Golden State Bancorp Inc.
About Fremont General
Fremont General Corporation is a financial services holding company. To find out more about Fremont General, or to subscribe to the Company’s Email Alert feature for notification of Company news and events, please visitwww.fremontgeneral.com.
Forward-Looking Statements
This news release may contain “forward-looking statements” which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements and the Company’s currently reported results are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company. These statements and the Company’s reported results are not guarantees of future performance and there can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially and adversely from the Company’s projected or reported results as a result of significant risks, uncertainties and assumptions that are difficult to predict, including:
| • | the impact of the Company’s withdrawal from the sub-prime residential real estate mortgage lending business; |
| • | the probability of the closing of the transactions outlined in the definitive agreement for the minority investment in the Company; |
| • | the probability of thecompletion of the proposed agreement to sell substantially all of the Company’s sub-prime residential real estate business and loans; |
| • | changes in the interest rate and competitive environments; |
| • | changes in general and specific economic conditions and trends; |
| • | changes in asset and loan valuations and the costs of originating loans; |
| • | changes in the volumes of loans originated, loans sold, the pricing of existing and future loans, and the values realized upon the sale of such loans; |
| • | access to the necessary capital and deposit resources to fund loan originations and the condition of the whole loan sale and securitization markets; |
| • | the impact of home price valuations and other changes in the commercial and residential real estate markets; |
| • | the effect of litigation, state and federal legislation and regulations, and development of, and the variability in determining, the allowance for loan losses; |
| • | the impact of the Cease and Desist Order issued by the Federal Deposit Insurance Corporation on the Company’s ability to conduct its business; |
| • | the impact of changes in federal and state tax laws and interpretations, including tax rate changes; |
| • | the ability to maintain an effective system of internal and financial disclosure controls, and to identify and remediate any control deficiencies, under the requirements of Section 404 of the Sarbanes-Oxley Act of 2002; and |
| • | other events and factors beyond our control. |
For a more detailed discussion of risks and uncertainties, see the Company’s public filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statements.
CONTACT: Investor Relations – Phone: (310) 315-5500
WEBSITE:www.fremontgeneral.com
