Bank of America Makes Investment in Countrywide Financial

Bank of America Makes Investment in Countrywide Financial

August 23, 2007

Buys convertible preferred stock for $2 billion


    CHARLOTTE, N.C., Aug. 23 /Xinhua-PRNewswire/ -- Bank of
America Corporation today announced it has made an
investment in Countrywide Financial Corporation, the
largest mortgage lender in the United States.

    ( Logo: 
http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )

    Bank of America will invest $2 billion in the form of a
non-voting convertible preferred security yielding 7.25
percent annually. The security can be converted into common
stock at $18 per share. 

    "We believe that in the current turmoil the stock
market has been underestimating the value in Countrywide's
operations and assets," said Kenneth D. Lewis, Bank of
America chairman and chief executive officer.  "This
investment reflects our confidence in their business and
recognizes the importance of the company in providing home
financing across the country. We hope this investment will
be a step toward a return to more normal liquidity in the
mortgage markets. Countrywide has a strong mortgage
origination business and it services the mortgages of one
in seven American households."  

    Bank of America

    Bank of America is one of the world's largest financial
institutions, serving individual consumers, small and middle
market businesses and large corporations with a full range
of banking, investing, asset management and other financial
and risk-management products and services. The company
provides unmatched convenience in the United States,
serving 57 million consumer and small business
relationships with more than 5,700 retail banking offices,
more than 17,000 ATMs and award-winning online banking with
more than 22 million active users. Bank of America is the
No. 1 overall Small Business Administration (SBA) lender in
the United States and the No. 1 SBA lender to minority-owned
small businesses. The company serves clients in 175
countries and has relationships with 98 percent of the U.S.
Fortune 500 companies and 80 percent of the Fortune Global
500. Bank of America Corporation stock (NYSE: BAC) is
listed on the New York Stock Exchange. 
http://www.bankofamerica.com


    For more information, please contact:

     Investors:

      Kevin Stitt
      Bank of America
      Tel:   [phone]

      Lee McEntire, 
      Bank of America
      Tel:   [phone]
 
      Leyla Pakzad
      Bank of America
      Tel:   [phone]

     Media:

      Scott Silvestri
      Bank of America
      Tel:   [phone]
      Email: [e-mail]