Lehman Brothers Holdings Announces Completion of the Sale of Substantially All Aurora Bank Assets and Insured Deposits

  Lehman Brothers Holdings Announces Completion of the Sale of Substantially
  All Aurora Bank Assets and Insured Deposits

Business Wire

NEW YORK -- June 29, 2012

Lehman Brothers Holdings Inc. (“Lehman”) today announced the completion of the
sale of substantially all of the assets and transfer of substantially all of
the insured deposits of its indirectly wholly-owned multi-billion dollar
subsidiary, Aurora Bank, FSB, (“Aurora”), concluding a process that
successfully avoided a potentially costly government resolution process of
Lehman’s two banks and that will ultimately yield significant recovery value
for the Lehman creditors.

Shortly after Lehman filed for bankruptcy in 2008, Aurora and Lehman’s other
multi-billion dollar subsidiary bank, Woodlands Commercial Bank (“Woodlands”),
were at risk of being seized and placed into receivership by the FDIC.
Instead, with the support of its creditors and the consent of the U.S.
Bankruptcy Court, and working cooperatively with the Federal and state bank
regulatory agencies, Lehman made a series of capital and liquidity injections
to initially stabilize and ultimately recapitalize the banks, positioning them
for this more favorable outcome.

Doug Lambert, Managing Director with Alvarez & Marsal said: “In completing the
sale of substantially all of Aurora through an open-door process, we have
achieved something that has rarely been accomplished over the past few years.
In December 2011, we completed the resolution process of Woodlands Bank at no
loss or cost to the FDIC or taxpayers, and now with the completion today of
the sales of Aurora’s residential servicing assets to Nationstar Mortgage LLC
(“Nationstar”) and the transfer of all customer deposits to New York Community
Bank, we have taken a significant step toward the successful resolution of
Aurora.

“During the past three and a half years, we successfully oversaw management of
the two banks’ resolution processes, restoring regulatory capital which
allowed the time necessary for the overall financial markets to recover from
the economic downturn, averting enormous liability to the Lehman estate and
ultimately allowing us to pay off or transfer all customer deposits while
preserving potential recovery value for Lehman creditors.”

After an extensive marketing process that began over a year ago with Aurora,
it was determined that the best economic result could be achieved through the
breakup of Aurora’s business lines and individual disposition of Aurora’s
diverse asset portfolios through a series of sale transactions. Over the past
several months, Aurora’s residential loan portfolios were sold to three
separate purchasers; the commercial loan portfolios were sold to a single
purchaser; the commercial servicing assets were sold to Ocwen Financial; the
residential servicing assets were sold to Nationstar; and its customers’
deposits were transferred to New York Community Bank.

The sale of the residential servicing assets included all of the mortgage
servicing rights and related advances owned by Aurora Bank and its wholly
owned subsidiary, Aurora Loan Services, LLC. It also included the sale of the
servicing facility in Scottsbluff, Nebraska and the assignment of leases of
the facilities in Indianapolis and Littleton, Colorado. Though not a required
part of the transaction, Nationstar has said that many of Aurora’s employees
have taken positions with Nationstar, allowing continuity of the excellent
service received by borrowers as well as minimizing, as much as possible, the
significant personal impact to the employee base from the sale transaction.

Following the closing of its insured deposit portfolio, Aurora will continue
to exist as a federal savings bank as it seeks to comply with the terms of a
consent order it entered into along with 13 other regulated institutions in
April 2011. As a result of the sales announced today, Aurora will retain
substantial liquid assets which will be used to comply with its obligations
under the consent order and ultimately distribute its remaining proceeds to
Lehman creditors.

Contact:

Media:
Lehman Brothers Holdings Inc.
Kimberly Macleod, 646-285-9215
kmacleod@lehmanholdings.com
or
Linden Alschuler Kaplan Public Relations
Steven Alschuler, 212-575-4545
salschuler@lakpr.com