Bank of America Exits Auto Leasing Business

        Businesses Do Not Meet Bank's Commitment to Consistent Results
                               And High Returns

    CHARLOTTE, N.C., Aug. 15 Bank of America Corporation
today announced it is exiting its auto leasing because it does not fit the company's strategic and
profitability objectives.
    "We have said for some time that if a business cannot be configured to
drive what we believe are consistent, attractive results, we would exit it.
Both of these businesses have very volatile earnings streams, have become
unattractive from a risk-reward standpoint and have not produced required
rates of return," said Kenneth D. Lewis, chairman and chief executive officer.
"We are committed to achieving consistent, above average shareholder returns
and these actions are aimed at achieving that mission."

    Auto Leasing
    Margins in the auto leasing business have been dramatically reduced, due
primarily to reductions in used car values caused by economic conditions and
other external influences.  The inherent fluctuation of used car values
results in earnings volatility that is not compatible with Bank of America's
growth and profitability objectives.
    Auto lease originations will cease immediately and the company intends to
manage its existing $9.7 billion portfolio over its remaining term.  There
will be no impact to existing consumer customers as the bank will continue
servicing existing contracts until their maturity dates.
    The decision to exit the auto leasing business does not impact the
company's continued commitment to the commercial and retail auto loan
businesses where the residual value risk is not present.

        New originations will cease immediately.  The company intends to liquidate
its $26.3 billion subprime portfolio over the next seven to nine months.  The
company has secured two buyers for its entire branch network and a portion of
its fulfillment operation.  Additionally, it is also looking for a buyer for
the servicing business.  There will be no immediate impact on existing
borrowers.

    Financial Impact
    To cover the costs of exiting these businesses, the company will take a
$1.25 billion after-tax charge in the third quarter. For context, Bank of
America earned $2.0 billion in the most recent quarter.  Approximately
50 percent of the charge represents the write-off of goodwill associated with
these businesses.  The other components include a $253 million after-tax
write-down of subprime loans necessary for their disposition and a
$256 million after-tax increase to the reserve for estimated auto lease
residual losses.  The remaining charges represent adjustments to subprime real
estate servicing values and miscellaneous expenses.
    Excluding the impact of the initial charge, these actions are expected to
be neutral to slightly dilutive to operating earnings in the near-term as
foregone income in the real estate business is offset by reduced losses in the
leasing business.  The company believes these actions pave the way to
significantly reduce volatility in the earnings stream and strengthen the
balance sheet.  Remaining capital associated with these businesses will be
reinvested.
    One of the world's leading financial services companies, Bank of America
is committed to making banking work for customers like it never has before.
Through innovative technologies and the ingenuity of its people, Bank of
America provides individuals, small businesses and commercial, corporate and
institutional clients across the United States and around the world new and
better ways to manage their financial lives.
    Bank of America stock (ticker: BAC) is listed on the New York, Pacific and
London stock exchanges.  The company's Web site is http://www.bankofamerica.com.
News, speeches and other corporate information may be found at
http://www.bankofamerica.com/newsroom.