ACA Capital Holdings, Inc. Files Registration Statement for Initial Public Offering of Common Stock.

NEW YORK -- ACA Capital Holdings, Inc. announced today that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission in connection with a proposed initial public offering of its common stock.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc. and Bear, Stearns & Co. Inc. will act as joint-book running managers and Stephens Inc. and Keefe, Bruyette & Woods, Inc. as co-managers for the proposed offering.

Copies of the preliminary prospectus, when they become available, may be obtained from: Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010; J.P. Morgan Securities Inc., Prospectus Department, One Chase Manhattan Plaza, New York, NY 10081; or Bear, Stearns & Co. Inc., Prospectus Department, 383 Madison Avenue, New York, NY 10179. In addition, a copy of this registration statement is available on the U.S. Securities and Exchange Commission website at www.sec.gov.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release 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 or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

ACA Capital Holdings, Inc. is a specialty financial services company engaged in the business of providing asset management services and credit protection products to participants in the global credit derivatives markets, structured finance capital markets and municipal finance capital markets. More information about ACA Capital Holdings, Inc. can be found at www.aca.com.

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations. Actual events, results, performance, or achievements may differ materially from any future events, results, performance, or achievements expressed or implied by such forward-looking statements. ACA Capital Holdings, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.