Corus Bankshares (CORS) Announces Impairment in Its Common Stock Portfolio From Fremont General (FMT) Holding

March 15, 2007 5:19 PM EDT

Corus Bankshares, Inc. (Nasdaq: CORS) has determined that the recent significant decline in value of the Company's investment in the common stock of Fremont General Corporation (NYSE: FMT) has caused its position in Fremont to be materially impaired. The Company has concluded that this impairment constitutes what is known as an "Other-Than-Temporary" impairment, as defined by generally accepted accounting principals .

While Corus has the intent and ability to retain its Fremont investment, Corus believes recent events provide strong indications that the Fremont position has suffered an "Other-Than-Temporary" impairment. Therefore -- and consistent with SEC staff guidance and reporting requirements, GAAP, and the Company's own policies -- Corus anticipates recording a charge in the first quarter of 2007 to reflect the decline in value of the Fremont investment.

As of December 31, 2006, Corus owned 1.6 million shares of Fremont. During 2007, and since the recent disclosures and decline in Fremont's stock price, Corus has opportunistically purchased an additional 967,000 shares, bringing its total position to 2.5 million shares with an average cost basis of $12.73/share. The Fremont investment is part of a portfolio of financial industry common stocks (held at the holding company) with a value in excess of $200 million.

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