Completes Exit of Business Including Entire Loan Book and Servicing Operations

CIT Group Inc. (NYSE: CIT), a leading global commercial finance company, announced today that it has agreed to sell its Home Lending business, consisting of $9.3 billion in assets and related servicing operations, to Lone Star Funds for $1.5 billion in cash and the assumption of $4.4 billion of outstanding debt and other related liabilities. The servicing centers, which employ approximately 300 people, are located in Marlton, NJ and Oklahoma City, OK.

In a separate transaction, CIT agreed to sell its approximately $470 million manufactured housing portfolio to Vanderbilt Mortgage and Finance, Inc. for approximately $300 million. Net cash proceeds from the two transactions are expected to be approximately $1.8 billion.

In the second quarter of 2008, CIT expects to record an estimated pretax loss for the Home Lending segment of approximately $2.5 billion ($2.0 billion after tax). This loss consists of an estimated $2.2 billion loss on sale and an approximate $350 million loss from operations during the period. Home Lending will be accounted for as a discontinued operation. The sale of the portfolios is scheduled to be completed in July, while the transfer of the servicing platform will be completed by the first quarter 2009. It is expected that the company's pro forma tangible equity to managed assets ratio at June 30, 2008 will be in excess of 9%, above the company's current 8.5% target.

“These sales complete our exit from all home lending businesses, removing the uncertainty surrounding this asset class, and advances our strategic transformation into a company focused entirely on commercial finance,” said Jeffrey M. Peek, Chairman and CEO, of CIT.

This transaction represents another significant step in CIT’s efforts to reduce risk and enhance liquidity, as it positions itself for long-term success and profitability. Since April 1, 2008, the Company has successfully executed on several additional key balance sheet strengthening initiatives, including: raising $1.6 billion in new capital, completing asset-backed financings of approximately $1.5 billion, selling more than $2 billion of assets at approximately book value and obtaining a $3 billion long-term financing facility from Goldman Sachs, while retiring $5.3 billion in debt and significantly reducing unfunded commitments.

JPMorgan Chase & Co. and Morgan Stanley served as financial advisors to CIT. Wachtell, Lipton, Rosen & Katz and McKee Nelson, LLP served as CIT's legal advisors.

About CIT

CIT (NYSE: CIT) is a global commercial finance company that provides financial products and advisory services to more than one million customers in over 50 countries across 30 industries. A leader in middle market financing, CIT has more than $80 billion in managed assets and provides financial solutions for more than half of the Fortune 1000. A member of the S&P 500 and Fortune 500, it maintains leading positions in asset-based, cash flow and Small Business Administration lending, equipment leasing, vendor financing and factoring. The CIT brand platform, Capital Redefined, articulates its value proposition of providing its customers with the relationship, intellectual and financial capital to yield infinite possibilities. Founded in 1908, CIT is celebrating its Centennial throughout 2008.

For more information, visit ir.cit.com