Guide Note:

Bank of America (BofA) acquired ailing Countrywide in a $4 billion all-stock transaction on January 11, 2008. The acquisition comes 5 months after BofA invested $2 billion in Countrywide. BofA was able to purchase the nation's largest mortgage lender at 2.9 times Countrywide's projected 2009 earnings.¹

Countrywide Fast Facts:

1. 1.04% of loans in Countrywide's portfolio resulted in foreclosures¹
2. Countrywide shareholders would receive 0.1822 of Bank America stock for each Countrywide share²
3. In December 2007, 7.2% of Countrywide's loans were delinquent²
4. Countrywide oversees nearly $1.4 trillion in loan assets²
5. Countrywide paid a dividend of 7.25% on preferred stock during the August 2007 BofA $2 billion cash injection

BofA Fast Facts:

1. BofA plans to operate Countrywide separately under the Countrywide brand
2. BofA expects $670 million in after-tax cost savings from the transaction²
3. Bank of America will absorb Countrywide's loan portfolio
4. In August 2007, Bank of America agreed to provide $2 billion in relief financing to Countrywide