FICC Fieldstone Investment Corp (MM)

COLUMBIA, Md., May 22 /PRNewswire-FirstCall/ -- Fieldstone Investment Corporation (NASDAQ:FICC), announced today that the proposed merger of Fieldstone with a subsidiary of Credit-Based Asset Servicing and Securitization LLC (C-BASS) was approved at the special meeting of Fieldstone's stockholders held today in Columbia, Maryland. Based on a preliminary tally of the shares voted, 29.9 million shares, or approximately 64% of the total shares outstanding as of the record date for the special meeting, were voted in favor of the merger. Of the votes present in person or by proxy, over 97% of the shares voted in favor of the merger. Fieldstone expects the transaction to close by the end of the second quarter of 2007 following the receipt of regulatory approvals and certain consents of third parties. 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 and a network of retail branch offices located throughout the country. Fieldstone is headquartered in Columbia, Maryland. Information Regarding Forward-Looking Statements Certain matters discussed in this press release may constitute "forward- looking statements" within the meaning of the federal securities laws including expectations regarding the expected timing on the closing of the proposed merger. These statements are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results and the timing of certain events may differ materially from those indicated by such forward-looking statements due to a variety of risks and uncertainties, many of which are beyond Fieldstone's ability to control or predict, including but not limited to (i) the potential inability to satisfy the conditions to closing of 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) deterioration in the performance of Fieldstone's loans sold and the related repurchase activity; (x) 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 (xi) other risks and uncertainties outlined in Fieldstone'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. DATASOURCE: Fieldstone Investment Corporation CONTACT: Mark C. Krebs, Director of Investor Relations of Fieldstone Investment Corporation, +1-410-772-5160, 1-866-438-1088, Web site: http://www.fieldstoneinvestment.com/

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