New Century Announces $35 Million Private Placement

New Century Announces $35 Million Private Placement 


IRVINE, Calif., Oct. 1  /PRNewswire-FirstCall/ -- New Century Financial
Corporation (NYSE:NEW), the nation's largest mortgage real estate investment
trust, today announced that it has agreed to sell 636,885 shares of its common
stock to Friedman, Billings, and Ramsey Group, Inc. at a price of $58 per
share, less certain discounts, for aggregate proceeds of approximately $35
million in a private placement transaction.  The private placement is expected
to close concurrently with the closing of New Century's previously announced
$783 million public offering.

The securities in this private placement, when issued, will not be registered
under the Securities Act of 1933, as amended, or the Securities Act, and may
not be offered or sold in the United States in the absence of an effective
registration statement under the Securities Act and applicable state securities
laws or exemption from those registration requirements.  New Century will agree
to file a registration statement covering the resale of the shares of common
stock acquired by the investor.  This communication shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall there be any
sale of these securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such state.

About New Century

New Century Financial Corporation is the nation's largest mortgage real estate
investment trust, providing first and second mortgage products to non-prime
borrowers nationwide through its operating subsidiaries.  New Century is
committed to serving the communities in which it operates with fair and
responsible lending practices.  To find out more about New Century, please
visit http://www.ncen.com/.

Safe Harbor Regarding Forward-Looking Statements

Certain statements contained in this press release may be deemed to be
forward-looking statements under federal securities laws and New Century
intends that such forward-looking statements be subject to the safe-harbor
created thereby.  Such forward-looking statements include, but are not limited
to, that New Century will complete the private placement and the concurrent
public offering.  New Century cautions that these statements are qualified by
important factors that could cause actual results to differ materially from
those reflected by the forward-looking statements.  Such factors include, but
are not limited to, (i) the condition of the U.S. economy and financial system,
(ii) the interest rate environment, (iii) the stability of residential property
values, (iv) the potential effect of new state or federal laws or regulations,
(v) the effect of increasing competition in New Century's sector, (vi) New
Century's ability to maintain adequate financing facilities, (vii) the outcome
of litigation or regulatory actions pending against New Century, and (viii) the
risks identified in the Annual Report on Form 10-K, as amended, for the year
ended December 31, 2003, filed by New Century's predecessor, New Century TRS
Holdings, Inc., and New Century's (and its predecessor's) other periodic
filings with the Securities and Exchange Commission.  New Century assumes no
obligation to update the forward-looking statements contained in this press
release. 

DATASOURCE: New Century Financial Corporation



CONTACT:  Carrie Marrelli, VP, Investor Relations, [phone], or

Erin Freeman, VP, Corporate Communications, [phone], both of New

Century Financial Corporation



Web site:  http://www.ncen.com/

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