News Releases

The decision was reached in view of the fact that the Company’s common stock had fallen below the New York Stock Exchange’s (“NYSE”) continued listing standard for average closing price of less than $1.00 over a consecutive 30 trading day period. NYSE Regulation also considered the “abnormally low” price of the Company’s common stock, which closed at $0.45 on April 11, 2008 with a resultant common market capitalization of $35.8 million.

Furthermore, based on a review of all the circumstances surrounding the Company, NYSE Regulation has determined that the Company’s securities are no longer suitable for listing on the NYSE. NYSE Regulation considered all the pertinent facts in arriving at this determination and the disclosures made in recent Company press releases on February 28, March 18, March 28, and April 14 2008, in cluding the following:

• The Federal Deposit Insurance Corporation (“FDIC”) and the California Department of Financial Institutions (“DFI”) issued a Supervisory Prompt Corrective Action Directive (the “Directive”) on March 26, 2008 which requires the Company and its Bank subsidiary (the “Bank”) to take one or more actions to recapitalize the Bank within 60 days or by May 26, 2008, as it has been categorized as “undercapitalized.” Though the Company is working with Credit Suisse Securities (USA) LLC and Sandler O’Neill LLP to explore strategic alternatives, there is no assurance that these will be successful or that the Company will be able to implement a strategy to comply with the Directive. 
• As part of its efforts to respond to the Directive, the Company has entered into a definitive purchase and sale agreement with CapitalSource TRS Inc. that provides for the purchase of substantially all of the Bank’s assets, which include the Bank’s participation interest in certain previously sold commercial real estate loans, the assumption of all the Bank’s deposits, and the acquisition of all the Bank’s branches. After giving effect to this proposed transaction, neither the Company nor the Bank is able to provide any assurances as to whether there will be any funds available to the Company, its creditors or its shareholders in view of the amount of the Bank’s existing obligations and contingent claims.
• The Company has also deferred interest due on two obligations in connection with attempts to negotiate a comprehensive debt restructuring: 1) the 9% Trust Originated Preferred Securities (TOPRs) of Fremont General Financing I – ticker symbol FMT PR; and 2) Series B 7.875% Senior Notes due March 2009.
• The Company is delayed in filing its December 31, 2007 Form 10-K with the Securities and Exchange Commission (“SEC ”) and is not able to determine when it will be able to file. The delay is attributable to ongoing reviews that may result in additional reserves, write-downs, or adjustments to the Company’s Bank subsidiary’s regulatory capital, which could have an adverse effect on the Company’s financial condition, results of operations, and business. As a result of the delayed Form 10-K filing, the Company will also not be able to hold its combined 2007 and 2008 annual meeting of shareholders by the April 30, 2008 date previously agreed to with NYSE Regulation.

The Company has a right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. Application to the SEC to delist the issues is pending the completion of applicable procedures, including any appeal by the Company of the NYSE Regulation staff’s decision. The NYSE may, at any time, suspend a security if it believes that continued dealings in or listing of the security on the NYSE is not advisable.

Company contacts – Investor and Media Relations:
Abernathy MacGregor Group Inc.
Daniel Hilley (dch@ambac.com)
Phone: 213-630-6550
Website: www.amabac.com