FICC Fieldstone Investment Corp (MM)

COLUMBIA, Md., Feb. 22 /PRNewswire-FirstCall/ -- Fieldstone Investment Corporation (NASDAQ:FICC) today announced that it has settled its litigation with former Fieldstone shareholders relating to the price paid by Fieldstone to redeem their shares following the closing of Fieldstone's Rule 144A equity offering in 2003. Pursuant to the settlement, Fieldstone has paid these former shareholders a total of $10.6 million and has received a full mutual release from all of the parties to the litigation, and dismissal of all claims with prejudice each of them may have had against Fieldstone arising out of or in connection with the Rule 144A offering and the related redemption of those shareholders' shares. As a result of the settlement, under the terms of Fieldstone's previously announced merger agreement with Credit-Based Asset Servicing and Securitization LLC, the per share purchase price in the merger is $5.53 for Fieldstone's common stock and is no longer subject to a potential $0.20 reduction relating to the settlement of litigation. About Fieldstone Investment Corporation Fieldstone Investment Corporation owns and manages a portfolio of non-conforming mortgage loans originated primarily by its mortgage origination subsidiary, Fieldstone Mortgage Company, and has elected to be a real estate investment trust for federal income tax purposes. Founded in 1995, Fieldstone Mortgage Company is a nationwide residential mortgage banking company that originates non-conforming and conforming residential mortgage loans through independent mortgage brokers serviced by regional wholesale operations centers and a network of retail branch offices located throughout the country. Fieldstone is headquartered in Columbia, Maryland. Safe Harbor Statement This press release contains 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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, dividends, achievements or transactions of the company and its affiliates or industry results to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such factors affecting Fieldstone include, but are not limited to (i) the potential inability to satisfy the conditions to closing of the merger or the possibility that Fieldstone's stockholders do not approve the merger; (ii) Fieldstone's ability to implement or change aspects of its portfolio strategy; (iii) interest rate volatility and the level of interest rates generally; (iv) the sustainability of loan origination volumes and levels of origination costs; (v) compliance with the covenants in Fieldstone's credit and repurchase facilities and continued availability of credit facilities for the liquidity it needs to support its origination of mortgage loans; (vi) the ability to sell or securitize mortgage loans on favorable economic terms; (vii) deterioration in the credit quality of Fieldstone's loan portfolio; (viii) the nature and amount of competition; (ix) the impact of changes to the fair value of Fieldstone's interest rate swaps on its net income, which will vary based upon changes in interest rates and could cause net income to vary significantly from quarter to quarter; and (x) other risks and uncertainties outlined in Fieldstone Investment Corporation's periodic reports filed with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are qualified by the cautionary statements in this section. We undertake no obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release. Additional Information About the Merger and Where to Find It This communication is being made in respect of the proposed merger transaction involving Fieldstone and C-BASS. In connection with the proposed transaction, Fieldstone will file a proxy statement with the Securities and Exchange Commission (SEC). Fieldstone stockholders are urged to read the proxy statement filed with the SEC carefully and in its entirety when it becomes available because it will contain important information about the proposed transaction. The final proxy statement will be mailed to Fieldstone stockholders. In addition, stockholders will be able to obtain the proxy statement and all other relevant documents filed by Fieldstone with the SEC free of charge at the SEC's website at http://www.sec.gov/. When available, the proxy statement and other pertinent documents also may be obtained for free at Fieldstone's website, http://www.fieldstoneinvestment.com/, or by contacting Mark Krebs, Senior Vice President, Fieldstone Investment Corporation, telephone (410) 772.7275. Participants in the Solicitation Fieldstone and its directors and officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the stockholders of Fieldstone in respect to the proposed transaction. Information about Fieldstone and its directors and executive officers, and their ownership of Fieldstone securities is set forth in the proxy statement for the 2006 Annual Meeting of Stockholders of Fieldstone which was filed with the SEC on April 26, 2006. Additional information regarding the interests of those persons may be obtained by reading the proxy statement relating to the proposed transactions, when it becomes available. DATASOURCE: Fieldstone Investment Corporation CONTACT: Mark Krebs, Senior Vice President of Fieldstone Investment Corporation, +1-410-772-7275, or Web site: http://www.fieldstoneinvestment.com/

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