Fremont Investment & Loan Completes Sale of Its Deposits and Substantially All of Its Assets to CapitalSource Bank.

BREA, Calif., July 25 /PRNewswire-FirstCall/ -- Fremont General Corporation (the "Company" or "FGC") (Pink Sheets: FMNTQ), doing business primarily through its wholly-owned bank subsidiary, Fremont Investment & Loan ("FIL" or the "Bank"), announced today that the Company completed the sale of a substantial portion of FIL's remaining assets, including all of its branches, and 100% of its deposits, to CapitalSource Bank ("CapitalSource Bank"), a newly formed California industrial bank and indirect wholly-owned subsidiary of CapitalSource Inc. The transaction was completed pursuant to the Purchase and Assumption Agreement (the "Agreement") entered into on April 13, 2008.

At the closing of the transaction, CapitalSource Bank acquired the Bank's entire retail branch network of 22 offices, its participation interest in previously sold commercial real estate loans, real and personal property, cash and certain other assets of the Bank. In addition, CapitalSource Bank assumed 100% of the Bank's deposits, which totaled approximately $5.2 billion.

As a result of this transaction, the Bank received a net premium of approximately $100.0 million for the assumed deposits and transferred assets. Pursuant to the Agreement, within 30 days after the closing, the parties will confirm the final dollar amount of assets sold and deposits assumed by CapitalSource Bank through preparation of a final closing statement, and, if there are any changes from the amount delivered at the closing, the final net premium to be received by FIL may increase or decrease.

Following the transfer of its branches to CapitalSource Bank, FIL will no longer accept deposits or conduct any other traditional banking functions of a California industrial bank. Within the next few days, the Bank will be relinquishing its federal deposit insurance to the Federal Deposit Insurance Corporation ("FDIC") and surrendering its charter to the California Department of Financial Institutions ("DFI"). The Bank, however, will continue as a California corporation and will be changing its name to "Fremont Reorganizing Corporation."

About Fremont General

Prior to the closing referenced above, Fremont General Corporation has been a financial services holding company with $8.8 billion in total assets, at September 30, 2007. The Company was engaged in deposit ...