Fremont General Corporation Enters Into Definitive Agreement to Sell Its Remaining Mortgage Servicing Rights to Litton Loan Servicing LP



BREA, Calif., May 8 /PRNewswire-FirstCall/—Fremont General
Corporation ("Fremont General” or the “Company") (Pink Sheets: FMNT), doing
business primarily through its wholly-owned bank subsidiary, Fremont
Investment & Loan ("FIL"), announced today that FIL has entered into an
Asset Purchase Agreement (the “Agreement") with Litton Loan Servicing LP, a
Delaware limited partnership and an affiliate of Goldman Sachs & Co.
("Litton"), that provides for the sale of FIL’s remaining mortgage
servicing rights ("MSR’s") on their $12.2 billion serviced loan portfolio
(as of March 31, 2008).

Pursuant to the Agreement, at closing, Litton will pay FIL for the
MSR’s and will reimburse FIL for the unreimbursed delinquency and servicing
advances made by FIL and FIL’s accrued and unpaid servicing fees. The
Agreement does not include the sale of FIL’s servicing platform. As a
result, the Company intends to wind down its remaining loan servicing
operation in Ontario, California.

The Company expects the proposed transaction to close in the second
quarter of 2008. Completion of the proposed transaction is subject to the
non-objection of the Federal Deposit Insurance Corporation ("FDIC") and the
California Department of Financial Institutions and the satisfaction of
customary closing conditions.

With the execution yesterday of this Agreement and the previously
announced agreement with CapitalSource, Inc., which is presently under
review by FIL’s banking regulators, FIL has now contracted to sell
substantially all of FIL’s remaining assets. The Company intends to shortly
be providing an update on its status and future plans.

About Fremont General

Fremont General Corporation is a financial services holding company
with $8.8 billion in total assets, at September 30, 2007. The Company is
engaged in deposit gathering through a retail branch network located in the
coastal and Central Valley regions of Southern California and residential
real estate mortgage servicing through its wholly-owned bank subsidiary,
Fremont Investment & Loan. Fremont Investment & Loan funds its operations
primarily through deposit accounts sourced through its 22 retail banking
branches which are insured up to the maximum legal limit by the FDIC.

The Retail Banking Division of the Bank continues to offer a variety of
savings and money market products as well as certificates of deposits
across its 22 branch network. Customer deposits remain fully insured by the
FDIC up to at least $100,000 and retirement accounts remain insured
separately up to an additional $250,000.

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 visit http://www.fremontgeneral.com.

Regulatory Filings

The Company’s periodic reports as filed with the Securities and
Exchange Commission ("SEC") can be accessed at
http://www.fremontgeneral.com and on the EDGAR’s section of the SEC’s
website at http://www.sec.gov.

Forward-Looking Statements

This news release may contain “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based upon current expectations and beliefs
of the Company and its subsidiaries. These statements and the Company’s
reported results herein are not guarantees of future performance or results
and there can be no assurance that actual developments and economic
performance will be those anticipated by the Company. Actual developments
and/or results may differ significantly and adversely from historical
results and those anticipated by the Company for the fiscal year ending
December 31, 2008 as a result of various factors which are set forth in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2006,
Quarterly Reports on Form 10-Q, and its reports on Form 8-K and other
documents filed by the Company with the SEC from time to time. The Company
does not undertake to update or revise forward-looking statements to
reflect the impact of circumstances or events that arise after the date the
forward-looking statements are made, except as required under applicable
securities laws.

SOURCE Fremont General Corporation