ACA Capital Adds Over $1.0 Billion in Assets Under Management.

NEW YORK -- ACA Capital Holdings, Inc. (NYSE: ACA) today announced that during the fourth quarter of 2006 its asset management subsidiary, ACA Management LLC, closed ACA CLO 2006-2, a $300 million collateralized loan obligation and ACA ABS 2006-2, a $750 million asset-backed collateralized debt obligation. ACA Capital invested in 10% or less of the equity tranches of these transactions, or $2.3 million and $3.5 million in the equity of ACA CLO 2006-2 and ACA ABS 2006-2, respectively.

ACA Capital is a holding company that provides asset management services and credit protection products to participants in the global credit derivatives markets, structured finance capital markets and municipal finance capital markets. ACA Capital's asset management services are provided through its asset management subsidiary, ACA Management, L.L.C., and its credit protection products are provided through its "A" rated financial guaranty insurance subsidiary, ACA Financial Guaranty Corporation. More information can be found at www.aca.com.