MINNEAPOLIS, May 18, 2008 /PRNewswire via COMTEX/ ----Residential Capital, LLC ("ResCap") today announced that, in connection with its pending private exchange offers and cash tender offers for any and all of the U.S. dollar equivalent $14.0 billion in aggregate principal amount of its outstanding notes, it has received requisite consents as described in the informational documents relating to the offers and has entered into supplemental indentures adopting the proposed amendments to the indentures under which the old notes were issued.

The amendments to the old notes release the subsidiary guarantees of ResCap's obligations under the old notes and eliminate certain of the restrictive covenants and events of default in the indentures. Accordingly, claims with respect to all new notes issued in the exchange offers will be effectively senior to claims with respect to unexchanged old notes to the extent of the value of all assets of the subsidiary guarantors as well as the collateral securing the new notes.

In addition, ResCap announced that it has extended the early delivery time to 5:00 p.m., New York City time, on Wednesday, May 21, 2008. Notes tendered prior to the early delivery time will be eligible to receive the early delivery payment described in the informational documents.

Tendered old notes may no longer be withdrawn. The offers will expire at 11:59 p.m., New York City time, on June 3, 2008, unless extended by ResCap with respect to any or all series of old notes.

The offers are subject to significant conditions that are further described in the informational documents. In particular, the offers are conditioned on ResCap entering into a new first lien senior secured credit facility, providing for at least $3.5 billion of commitments on terms acceptable to ResCap. As a result of these conditions, ResCap may not be required to exchange or purchase any of the old notes tendered.

The new notes will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any other applicable securities laws and, unless so registered, the new notes may not be offered, sold, pledged or otherwise transferred within the United States or to or for the account of any U.S. person, except pursuant to an exemption from the registration requirements thereof. Accordingly, the new notes are being offered and issued only (i) in the United States to "qualified institutional buyers" (as defined in Rule 144A under the Securities Act), or QIBs, and (ii) outside the United States to non-U.S. persons (as defined in Regulation S under the Securities Act) who are "qualified investors" within the meaning of Article 2.1(e) of the Prospectus Directive as adopted within each relevant member state of the European Economic Area, in a private transaction in reliance upon an exemption from the registration requirements of the Securities Act. ResCap will enter into a registration rights agreement pursuant to which, under certain circumstances, it will agree to file an exchange offer registration statement or a shelf registration statement with respect to the new notes.

The complete terms and conditions of the offers are set forth in ResCap's Offering Memorandum and Consent Solicitation Statement dated May 5, 2008, as supplemented on May 14, 2008 (the "offering memorandum"), and the related letter of transmittal and consent.

Documents relating to the offers will only be distributed to noteholders who complete and return a letter of eligibility confirming that they are within the category of eligible investors for this private offer. Noteholders who desire a copy of the eligibility letter should contact Global Bondholder Service Corporation, the information agent for the offers, at (866) 470-3800 (U.S. Toll-free) or (212) 925-1630 (Collect).

This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the notes. The offers to buy or exchange the old notes, as applicable, are only being made pursuant to the offering memorandum and the related letter of transmittal and consent that ResCap is distributing to holders of the old notes. The offers are not being made to holders of the old notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the offers to be made by a licensed broker or dealer, the offers will be deemed to be made on behalf of ResCap by one or more of the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

Forward-Looking Statements

In this press release, the use of the words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "seek," "may," "would," "could," "should," "believe," "potential," "continue," or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements herein, other than statements of historical fact, including without limitation, statements about future events and financial performance, are forward-looking statements that involve certain risks and uncertainties.

While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and ResCap's actual results may differ materially due to numerous important factors that are described in the most recent reports on SEC Form 10-K for ResCap, each of which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among others, the following: securing low cost funding to sustain growth for ResCap; the ability to maintain an appropriate level of debt; recent developments in the residential mortgage market, especially in the nonprime sector; the impact on ResCap of the continuing decline in the U.S. housing market; changes in U.S. government-sponsored mortgage programs or disruptions in the markets in which ResCap's mortgage subsidiaries operate; changes in our contractual servicing rights; costs and risks associated with litigation; changes in ResCap's accounting assumptions that may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; failure to remediate a material weakness in ResCap's internal controls that could result in material misstatements in its financial statements in future periods; changes in the credit ratings of ResCap; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations. Investors are cautioned not to place undue reliance on forward-looking statements. ResCap does not undertake any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.

SOURCE Residential Capital, LLC

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