Balboa Insurance Group Enters Home Warranty Business

-Financial Institutions to Benefit from High-Demand Product Line-
IRVINE, CA (July 11, 2002) – Balboa Insurance Group, a member of the Countrywide family of diversified financial services, announced today the formation of Balboa Warranty Services Corporation (BWSC). The company was formed to offer a variety of warranty products to customers of the financial services industry. The first line of products, which are currently being deployed, will focus on home warranty services.

"The formation of BWSC corresponds with the company's growth strategy while adding to the already comprehensive line of quality insurance products offered through Balboa," said Drew Gissinger, managing director and president of Balboa Insurance Group. "We're excited to offer our valued clients an expanded choice of product offerings backed by the high level of customer service they have come to expect."

The Home Warranty Association of California (HWAC) recently announced that nearly nine out of 10 homes sold in California last year carried a home warranty contract. This represents the highest percentage in the 24-year history of the state's home warranty industry. With the demand for home warranty services increasing, Balboa hopes to fulfill the needs of financial institutions looking to expand into this increasingly popular product line.

Home warranty insurance is a service contract that covers the repair or replacement of major home systems and appliances that break down due to normal wear and tear. These contracts protect homeowners from repair costs that aren't covered by home insurance, especially the inner workings of a home — the plumbing, heating, air conditioning and major appliances.

About Balboa Insurance Group, Inc.
Balboa Insurance Group, Inc., the parent of Balboa Warranty Services Corporation, is a subsidiary of Countrywide Credit Industries, Inc. The Balboa insurance companies, all subsidiaries of Balboa Insurance Group, Inc., are known collectively as Balboa Life & Casualty and consist of Balboa Insurance Company, Meritplan Insurance Company, Newport Insurance Company, Balboa Lloyds Insurance Company, Balboa Life Insurance Company and Balboa Life Insurance Company of New York. The Balboa Life & Casualty group is rated "A" (Excellent) by the A.M. Best Company, the oldest and most widely recognized rating agency dedicated to the insurance industry. This rating, based on performance and financial stability, is assigned to companies that have excellent balance sheet strength, operating performance and business profile. An A rating represents A.M. Best's opinion that Balboa Life & Casualty has a strong ability to meet ongoing obligations to policyholders. Balboa Life & Casualty is headquartered in Irvine, California, and has a network of sales and service centers throughout the country. To learn more about Balboa Life & Casualty, please visit www.balboainsurance.com.

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