Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of Investors in Countrywide Financial Corp. Capital V Preferred Stock

Business Wire, Sept 20, 2007

NEW YORK -- Wolf Haldenstein Adler Freeman & Herz LLP today filed a class action lawsuit in the United States District Court, Central District of California, on behalf of all persons who purchased the Capital V preferred stock of Countrywide Financial Corp. ("Countrywide" or the "Company") [NYSE:CFC; CFC-B; CFC-PB] from the date of the Company's public offering (the "Offering") on November 1, 2006, and all purchasers traceable thereto (the "Class Period") against the Company, certain of its officers and directors, and the underwriters of the Offering, alleging violations under under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act"), 15 U.S.C. SS 77k and 77l (the "Class").

The Complaint asserts that Countrywide's Prospectus contained both material misstatements and omissions, which plaintiff and the Class relied upon to their detriment. The representations made in the Company's Prospectus were materially false and misleading because at the time of the Offering, Countrywide was already suffering from several adverse factors that were not revealed and/or adequately addressed in the document. These factors include, but are not limited to, failure to disclose Countrywide's exposure to the down market in light of its subprime lending practices and its provision of loans to applicants without proof of income, employment, or assets. There factors already were causing a material adverse affect on Countrywide's business and according to the Company's recent statements, will continue to affect its business going forward.

The Director Defendants (as defined in the complaint) and Countrywide's underwriters could have - and should have - discovered the material misstatements and omissions in the Company's Prospectus prior to its filing with the SEC and distribution to the investing public. Instead, they failed to do so as a result of a negligent and grossly inadequate due diligence investigation.

Certain of the adverse factors affecting Countrywide's business were first revealed on July 24, 2007, in a Company issued press release announcing results for the quarter ended June 30, 2007.

The July 24, 2007, announcements forecasted a weak second half of 2007 due to adverse market conditions, which caused the price of Countrywide's Capital V preferred stock to decline from its closing price of $24.46 on July 23, 2007 to a value of $20.85 just a week later on July 31, 2007 on unusually large trading volume. As the Company continued to issue negative reports, including statements in its August 9, 2007 10-Q that the Company was facing "unprecedented market conditions," which significantly diminished its liquidity, the stock price continued its fall to just $13.85 on August 16, 2007.

Plaintiff and the Class have suffered serious financial damage as a result of Defendants' material misstatements and omissions in the Company's Prospectus. Had plaintiffs and the other members of the Class known the truth, they would not have purchased said preferred stock, or would not have purchased them at the inflated prices that were paid.

The case name is styled McBride v. Countrywide Financial Corporation, et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.

If you purchased Countrywide Capital V preferred stock during the Class Period, you may request that the Court appoint you as lead plaintiff by November 19, 2007.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq., Rachel S. Poplock, Esq. or Derek Behnke), via e-mail at classmember@whafh.com or visit our website at www.whafh.com. All e-mail correspondence should make reference to Countrywide.