CALABASAS, Calif., Oct. 5 /PRNewswire-FirstCall/ -- Countrywide
Financial Corporation (NYSE: CFC) announced today that in accordance with
the terms of a pre-arranged stock trading plan for Angelo R. Mozilo,
chairman and chief executive officer, established pursuant to Rule 10b5-1
of the Securities Exchange Act of 1934, stock sales will occur starting on
October 8, 2007 and ending on October 12, 2007.
A stock trading plan entered into pursuant to Rule 10b5-1 ("10b5-1
Plan") allows corporate officers, directors, and other designated insiders
to increase their company stock holdings, diversify their investment
portfolios, spread company stock trades out over a period of time to reduce
market impact, and avoid concerns about material nonpublic information they
may have when their 10b5-1 Plan purchases or sells stock. Mr. Mozilo has
exclusively utilized 10b5-1 Plans for Company stock sales since 2004 and
currently has two Plans in effect.
One of these 10b5-1 Plans, which was entered into almost a year ago on
October 27, 2006, is set to expire this month and covers stock options
previously granted to Mr. Mozilo. It provides that a pre-determined amount
of Countrywide's common stock issued upon exercise of these options is to
be sold on a monthly basis in specified increments. The 10b5-1 Plan also
includes a provision that sales trades cannot take place if the Company's
stock falls below a designated floor price. During the months of August and
September, 2007, the stock price declined below the designated floor price
and no trades were executed. Another provision in the 10b5-1 Plan
stipulates that if any shares subject to the Plan remain unsold on October
8, 2007, then those shares will not be subject to any price floor and will
be sold in 20 percent increments, commencing on October 8, 2007 and ending
on October 12, 2007.
"The 10b5-1 Plan was put in place as part of my financial planning and
in recognition of advice I received to diversify my stock holdings," Mozilo
said. "The sales that are about to occur under my 10b5-1 Plan are strictly
in accordance with the stipulations originally set forth in the Plan. The
10b5-1 Plan is designed to comply with Rule 10b5-1 and remove me from
active participation in the trading of the Countrywide shares that I own."
"The upcoming sales are driven by rules within the 10b5-1 Plan that
were established long ago, and should in no way be viewed as any indication
of my future outlook for Countrywide," Mozilo said. "As one of
Countrywide's largest individual shareholders, my interests are firmly
aligned with those of our other investors. I recognize that the Company's
stock is currently under pressure. However, the terms of the 10b5-1 Plan
that I established in October 2006 require that these sales be executed."
About Countrywide
Founded in 1969, Countrywide Financial Corporation is a diversified
financial services provider and a member of the S&P 500, Forbes 2000 and
Fortune 500. Through its family of companies, Countrywide originates,
purchases, securitizes, sells, and services residential and commercial
loans; provides loan closing services such as credit reports, appraisals
and flood determinations; offers banking services which include depository
and home loan products; conducts fixed income securities underwriting and
trading activities; provides property, life and casualty insurance; and
manages a captive mortgage reinsurance company. For more information about
the Company, visit Countrywide's website at http://www.countrywide.com.
This Press Release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended,
regarding management's beliefs, estimates, projections, and assumptions
with respect to, among other things, the Company's future operations,
financial results, business plans and strategies, as well as industry and
market conditions, all of which are subject to change. Actual results and
operations for any future period may vary materially from those projected
herein and from past results discussed herein. Factors which could cause
actual results to differ materially from historical results or those
anticipated include, but are not limited to: increased cost of debt;
reduced access to corporate debt markets; unforeseen cash or capital
requirements; a reduction in secondary mortgage market investor demand;
increased credit losses due to downward trends in the economy and in the
real estate market; increases in the delinquency rates of borrowers;
competitive and general economic conditions in each of our business
segments such as slower or negative home price appreciation; changes in
general business, economic, market and political conditions in the United
States and abroad from those expected; reduction in government support of
homeownership; the level and volatility of interest rates; changes in
interest rate paths; changes in debt ratings; changes in generally accepted
accounting principles or in the legal, regulatory and legislative
environments in which Countrywide operates; the judgments and assumptions
made by management regarding accounting estimates and related matters; the
ability of management to effectively implement the Company's strategies;
and other risks noted in documents filed by the Company with the Securities
and Exchange Commission from time to time. Words like "believe," "expect,"
"anticipate," "promise," "plan," and other expressions or words of similar
meanings, as well as future or conditional verbs such as "will," "would,"
"should," "could," or "may" are generally intended to identify
forward-looking statements. The Company undertakes no obligation to
publicly update or revise any forward-looking statements or any other
information contained herein, and the statements made in this press release
are current as of the date of this release only.
SOURCE Countrywide Financial Corporation
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Related links:
http://www.countrywide.com/
CONTACT:
Investors, David Bigelow or Lisa Riordan,
+1-818-225-3550, or Media, +1-800-796-8448
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