ACA Capital Prices Initial Public Offering.

NEW YORK -- ACA Capital Holdings, Inc. (NYSE: ACA) announced today the pricing of its initial public offering of 6,898,541 shares of its common stock at $13.00 per share. Of the shares offered, 6,875,000 were offered by ACA Capital and 23,541 were sold by selling shareholders. In addition, the underwriters have been granted a 30-day over-allotment option to purchase up to an additional 1,034,780 shares from ACA Capital.

ACA Capital's common shares will begin trading today, November 10, 2006, on the New York Stock Exchange under the trading symbol "ACA". The offering is expected to close on November 13, 2006, subject to customary conditions.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc. and Bear Stearns & Co. Inc. are serving as the joint book-running managers for the offering. The co-managers for the offering are Stephens Inc. and Keefe, Bruyette & Woods, Inc. Copies of the final prospectus relating to these securities may be obtained by writing to the joint book-runners at: Credit Suisse Securities (USA) LLC, Prospectus Department, Eleven Madison Avenue, New York, NY 10010; J.P. Morgan Securities Inc., Prospectus Library, One Chase Metrotech Center, CS Level, Brooklyn, NY 11245; or Bear, Stearns & Co. Inc., Prospectus Department, 383 Madison Avenue, New York, NY 10179.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.