Fremont Lowered

June 12, 2000

Duff & Phelps Credit Rating Co. (DCR) lowered the senior debt rating of Fremont General Corporation (Fremont) from “BBB” to “BB+.” The preferred securities of Fremont subsidiary, Fremont General Financing I, also went down from “BB+” to “BB.” The claims paying ability and the short-term claims paying ability ratings on Fremont Compensation Insurance Group were lowered to “BBB+” (below the threshold for DCR’s insurer solvency seal) and “D-2” (from “D-1”), respectively. The rating outlook is negative.