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CALABASAS, Calif., Aug. 7 /PRNewswire-FirstCall/ -- CountrywideFinancial Corporation (NYSE: CFC) and HomeBanc Corp. announced today thatthey have reached an agreement whereby Countrywide will acquire certain ofthe assets related to HomeBanc's retail mortgage operations, including fiveretail branches, and hire a significant number of HomeBanc's retail loanoriginators. Countrywide will pay no cash premium in this transaction. "Countrywide is continuing to leverage the opportunities that arearising from the consolidating market," said David Sambol, President andChief Operating Officer of Countrywide Financial Corporation. "Thisagreement illustrates the low-cost, low-risk transaction strategy we areundertaking in this environment to strengthen our retail franchise.HomeBanc's focus on prime retail purchase originations fits well withCountrywide's long-term strategy of growing our market share in the retailchannel and maintaining our position as the nation's leading mortgage loanoriginator and servicer." "In light of the extraordinary difficulties existing in the mortgagemarket, we feel this agreement with Countrywide provides us with anattractive opportunity to transition a portion of our mortgage originationassets to a well-established and respected lender in this space," saidKevin D. Race, HomeBanc's President and Chief Executive Officer."Countrywide is the nation's largest mortgage lender and has thereputation, resources and capability to provide a stable platform for ourassociates who join their team." As part of the transaction, Countrywide will acquire certain assetsrelated to HomeBanc's retail operations, including the fixed assets relatedto five branches located in Georgia, Florida and North Carolina and willassume the leases related to those branches. Countywide will not acquireany other assets or assume any other liabilities connected with HomeBanc.This transaction, which is subject to specified conditions, is expected toclose by August 10, 2007. About Countrywide Founded in 1969, Countrywide Financial Corporation is a diversifiedfinancial services provider and a member of the S&P 500, Forbes 2000 andFortune 500. Through its family of companies, Countrywide originates,purchases, securitizes, sells, and services prime and nonprime loans;provides loan closing services such as credit reports, appraisals and flooddeterminations; offers banking services which include depository and homeloan products; conducts fixed income securities underwriting and tradingactivities; provides property, life and casualty insurance; and manages acaptive mortgage reinsurance company. For more information about theCompany, visit Countrywide's website at http://www.countrywide.com. About HomeBanc HomeBanc is the parent company of HomeBanc Mortgage Corporation, amortgage banking company that traditionally has focused on originatingprimarily prime purchase money residential mortgage loans in the SoutheastUnited States. HomeBanc is headquartered in Atlanta, GA, and has offices inGeorgia, Florida, North Carolina and Tennessee. For more information aboutHomeBanc, visit HomeBanc on the Internet at http://www.homebanc.com. This Press Release contains forward-looking statements within themeaning of Section 21E of the Securities Exchange Act of 1934, as amended,regarding the beliefs, estimates, projections, and assumptions with respectto, among other things, Countrywide's and HomeBanc's future operations,business plans and strategies, as well as industry and market conditions,all of which are subject to change. Actual results and operations for anyfuture period may vary materially from those projected herein and from pastresults discussed herein. Factors which could cause actual results todiffer materially from historical results or those anticipated include, butare not limited to: competitive and general economic conditions in each ofour business segments such as slower or negative home price appreciation;changes in general business, economic, market and political conditions inthe United States and abroad from those expected; credit losses due todownward trends in the economy and in the real estate market; reductions ininvestor demand in the secondary mortgage and credit markets; unforeseencash or capital requirements; increase in the cost of debt as a result of aratings downgrade or otherwise; reduced or loss of access to corporate debtmarkets; reduction in government support of homeownership; the level andvolatility of interest rates; changes in interest rate paths; increases inthe delinquency rates of borrowers; changes in generally acceptedaccounting principles or in the legal, regulatory and legislativeenvironments in the markets in which Countrywide and HomeBanc operate; thejudgments and assumptions made by the respective management teams ofCountrywide and HomeBanc regarding accounting estimates and relatedmatters; the ability of the respective management teams of Countrywide andHomeBanc to effectively implement their respective strategies; and otherrisks noted in documents filed by Countrywide and HomeBanc, as appropriate,with the Securities and Exchange Commission from time to time. Words like"believe," "expect," "anticipate," "promise," "plan," and other expressionsor words of similar meanings, as well as future or conditional verbs suchas "will," "would," "should," "could," or "may" are generally intended toidentify forward-looking statements. Neither Countrywide nor HomeBancundertake any obligation to publicly update or revise any forward-lookingstatements or any other information contained herein, except as required bylaw.
