Bank of America Makes Investment in Countrywide Financial

    Buys convertible preferred stock for $2 billion

    CHARLOTTE, N.C., Aug. 22 /CNW/ -- Bank of America Corporation today
announced it has made an investment in Countrywide Financial Corporation, the
largest mortgage lender in the United States.
    (Logo: )
    Bank of America will invest $2 billion in the form of a non-voting
convertible preferred security yielding 7.25 percent annually. The security
can be converted into common stock at $18 per share.
    "We believe that in the current turmoil the stock market has been
underestimating the value in Countrywide's operations and assets," said
Kenneth D. Lewis, Bank of America chairman and chief executive officer.  "This
investment reflects our confidence in their business and recognizes the
importance of the company in providing home financing across the country. We
hope this investment will be a step toward a return to more normal liquidity
in the mortgage markets. Countrywide has a strong mortgage origination
business and it services the mortgages of one in seven American households."
    Bank of America
    Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk-management products and services. The company
provides unmatched convenience in the United States, serving 57 million
consumer and small business relationships with more than 5,700 retail banking
offices, more than 17,000 ATMs and award-winning online banking with more than
22 million active users. Bank of America is the No. 1 overall Small Business
Administration (SBA) lender in the United States and the No. 1 SBA lender to
minority-owned small businesses. The company serves clients in 175 countries
and has relationships with 98 percent of the U.S. Fortune 500 companies and 80
percent of the Fortune Global 500. Bank of America Corporation stock (NYSE:  
BAC) is listed on the New York Stock Exchange.

For further information:

For further information: Investors, Kevin Stitt, +1-704-386-5667, Lee 
McEntire, +1-704-388-6780, or Leyla Pakzad, +1-704-386-2024; Media, Scott 
Silvestri, +1-704-604-8567,, all of Bank of 
America Web Site:

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