ACA Capital Holdings, Inc. Announces Restructuring Agreement

Business Wire, August 8, 2008

NEW YORK -- ACA Capital Holdings, Inc. (OTC BB: ACAH), today announced that on August 6, 2008, it, together with its affiliates, entered into a Restructuring Agreement (the "Restructuring Agreement") with Bear, Stearns & Co. Inc., Premium Asset Trust, with respect to Premium Asset Trust, ACA Trust Series 1 ("PATS"), PATS/ACA Guaranty Trust (the "Guaranty Trust"), Wilmington Trust Company, as trustee of PATS and the Guaranty Trust (the "Trustee"), holders of the PATS Certificates (as defined below), and certain counterparties specified therein. Pursuant to the Restructuring Agreement, as a result of the deterioration in the creditworthiness and financial condition of ACA Financial Guaranty Corporation ("ACA FG"), the parties elected to restructure the terms of certain pass-through certificates originally issued and sold in the outstanding certificate balance of $100 million pursuant to a series trust agreement dated as of March 11, 2005, which evidence funded undivided beneficial interests in PATS (the "PATS Certificates"), and the obligations of ACA FG and its applicable subsidiaries in connection with the PATS Certificates. The Restructuring Agreement is binding on all holders of the PATS Certificates.

Among other things, the parties agreed to reduce the amount payable at maturity of the PATS Certificates and shortened the maturity date of the PATS Certificates. In addition, ACA FG amended the terms of the financial guaranty insurance policy issued by ACA FG in favor of the Guaranty Trust, which had irrevocably guaranteed payment of the certificate balance of the PATS Certificates and the distributions thereon when due. ACA FG executed an endorsement to the policy agreeing to irrevocably guaranty the amended PATS Certificates.