Pursuant to the Signature Plan of Reorganization, on emergence from bankruptcy on June 11, 2010, holders of the Fremont General Corporation Trust Originated Preferred Securities (TOPrS) received a combination of cash, common stock and 9% notes due December 31, 2016. Each TOPrS holder received the following in exchange for each TOPrS share:

• June 11, 2010 - $10.75 of cash for each TOPrS share
• June 25, 2010 - 5.25 common shares for each TOPrS share
• July 16, 2010 - $9.75 of principal in 9% Notes due December 31, 2016 for each TOPrS share

The Company is not providing tax advice regarding this conversion or allocation of basis among the distributions received. We recommend the former TOPrS holders contact their tax advisers for determination of the tax consequences and proper reporting of this conversion.