full text:
* Sale of the Company's commercial real estate lending business to iStar Financial Inc.
* Agreement for investment in the Company by an investor group led by Gerald J. Ford
* Gerald J. Ford, Carl B. Webb and J. Randy Staff to become Chairman, CEO and CFO, respectively, of the Company
Fremont General Corporation (the "Company") (NYSE:FMT) , doing business primarily through its wholly-owned industrial bank, Fremont Investment & Loan (the "Bank"), today announced definitive agreements for the sale of the Company's commercial real estate lending business, the sale of a minority interest in the Company and the appointment of new senior management.

  The agreements call for:

  *  The sale to iStar Financial Inc. (NYSE:SFI)
    ("iStar") of the Company's
     commercial real estate lending business and outstanding loan portfolio.
     The Company, at closing, will receive cash of approximately 30% of the
     net loan portfolio, or $1.9 billion, and a participation interest equal
     to approximately 70% of the net loan portfolio, which will bear
     interest at LIBOR + 150 basis points, subject to certain conditions.
     iStar intends to retain the majority of the Company's commercial real
     estate related employees, facilities and operations.

  *  A minority investment in the Company by an investor group led by Gerald
     J. Ford (the "Investor Group").  Under this transaction, the Investor
     Group will acquire a combination of approximately $80 million in
     exchangeable non-cumulative preferred stock of the Bank and warrants to
     acquire additional common stock of the Company.

  *  Mr. Ford will become Chairman of the Board of the Company and the Bank,
     and the Company and the Bank will name two affiliated executives to
     senior positions: Carl B. Webb as Chief Executive Officer and J. Randy
     Staff as Chief Financial Officer.  Mr. Webb will also be a Director of
     the Company and the Bank.

"These transactions provide a major turning point for Fremont General. The transaction with iStar allows us to exit our existing commercial real estate lending business while retaining an earning asset that provides a bridge to the development of new lending businesses. The investment led by Mr. Ford will provide part of the foundation to building these new businesses," said Louis J. Rampino, CEO of Fremont.
"Mr. Ford intends to build new lending businesses around Fremont's existing retail deposit business. Our Retail Bank would thus continue its 70-year history of offering first-class customer service and competitively priced Certificate of Deposits and Savings Accounts across its network of California branch offices," said Mr. Rampino. "Fremont's Retail Bank will begin to explore new products and services that will meet the needs of current customers as well as appeal to new market segments."
"This transaction does not affect customer accounts and our customers can continue to visit their local branch office for their on-going savings needs. 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," he added.
"My associates and I are excited about this opportunity and look forward to returning to the banking business in California," said Mr. Ford.
For more information visit: http://www.fremontgeneral.com/

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