Countrywide Statement on Job Cuts

Countrywide Announces Plan to Address Changing Market Conditions Including Workforce Reductions

Countrywide Financial Corporation today announced a plan of action to address changing market conditions that positions the Company for continued growth and success. Central elements of this plan include:

-- Reductions in workforce which will occur in areas most impacted by lower mortgage market origination volumes. The Company presently estimates a total workforce reduction of 10,000 to 12,000 over the next three months representing up to 20% of its current workforce. Actual reductions could be lower should the interest rate environment and related market volume outlook improve. Based on current interest rate levels, Countrywide presently expects that total market origination volumes will decline approximately 25% in 2008 compared to 2007 levels.

-- Migration of the Company's residential lending business into its federally chartered thrift entity, Countrywide Bank, FSB, will continue. This is expected to enhance and strengthen Countrywide's business model by delivering greater and more stable liquidity, reduced borrowing costs and greater operational efficiencies. By September 30, 2007, the Company expects that almost all residential loan production will be originated within the Bank.

-- Product guideline revisions have been made to ensure that all loans which the Company produces can be sold into the secondary market or are high quality prime loans to be held in Countrywide Bank's investment portfolio. This includes the Company's recent decision to no longer originate any subprime loans other than those eligible for sale or securitization under programs supported by Fannie Mae, Freddie Mac or the FHA. In spite of these changes, it is important to emphasize that Countrywide continues to offer among the broadest and most competitive product menus in the industry.

-- Growth plans will continue in areas of opportunity. Countrywide's retail and wholesale lending divisions plan to continue aggressively pursuing the increased opportunities presenting themselves in the current environment for profitable market share growth. Countrywide Bank, in addition to housing the Company's mortgage banking activities, will also focus on growing its residential and commercial loan investment portfolio and expanding its financial centers and deposit franchise. Countrywide's insurance segment will continue to grow both its institutional and personal lines insurance businesses.

"We are taking decisive action to ensure that Countrywide continues to be well-positioned for further success," said Angelo Mozilo, Chairman and Chief Executive Officer. "As we carry out our plan, the Company's overarching focus is exactly where it has always been: to remain an industry leader in the U.S. residential lending business, to deliver value and world-class service to our customers and business partners, to enhance shareholder value, and to provide career opportunities for our people."

"Each employee at Countrywide is considered an important member of the Countrywide family," said David Sambol, President and Chief Operating Officer. "While workforce reductions are therefore always very difficult, these decisions are being made with the utmost attention and sensitivity to the impact they will have on our Company and our people."