Leasing News

***Extra Edition---- CIT loss, BofA to buy Countrywide***

CIT will lose between $125 MM & $135MM

An increase in reserves for credit losses of approximately $300 million, predominantly related to the Company's held-for-investment home lending portfolio. This additional provision for credit losses is expected to reduce net income by approximately $190 million.
A loss of approximately $40 million pre-tax, $25 million after-tax, on home lending receivables held-for-sale at September 30, 2007 reflecting the previously disclosed disposition of certain receivables during the quarter and a lower-of-cost-or-market adjustment on the remainder. Home lending receivables held-for-sale at December 31, 2007 are expected to be approximately $350 million.
A pre-tax gain in our Vendor Finance business of $270 million ($160 million after-tax) on the previously disclosed sales of CIT's interest in its Dell Financial Services joint venture and of its U.S. Systems Leasing business. Both of these transactions closed as anticipated in December.
The write-off of all goodwill and intangibles related to the Company's student lending business acquired in 2005, which is expected to reduce net income by approximately $300 million, but have no impact on either tangible book value or capital ratios. This non-cash charge is necessitated by recent decreases in market valuations for student lending businesses, and lower profit expectations for this business as a result of higher funding costs (both secured and unsecured).

The combination of these items would be a net reduction to fourth quarter earnings of approximately $355 million after-tax, or $1.87 per share, resulting in an anticipated net loss for the quarter of $125 million to $135 million, or $0.65-$0.70 per share. Additionally, the Company strengthened its capital and liquidity positions and will report:
An improvement in the Tangible Equity to Managed Assets Ratio, which is expected to be approximately 8.8%, up from 7.7% at September 30, 2007 and above its 8.5% target.
Cash and committed liquidity in excess of $15.5 billion, representing over 120% of the total of commercial paper outstanding and 2008 unsecured debt maturities.
The Company will release its consolidated fourth quarter and full year 2007 results at approximately 7:00 A.M. on January 17, 2008 and will host a conference call to discuss the results at 9:00 A.M. on that date. Additional information about the Company and the upcoming call can be found in the Investor Relations section of the CIT website at www.cit.com .