Fitch Affirms Lakeside CDO I, Ltd.

CHICAGO -- Fitch affirms the following three classes of notes issued by Lakeside CDO I, Ltd., (Lakeside). These affirmations are a result of Fitch review process and are effective immediately:

-- $442,959,866 class A-1 notes at 'AAA';

-- $152,000,000 class A-2 notes at 'AAA';

-- $8,677,225 class B notes at 'BBB'.

Lakeside is a collateralized debt obligation (CDO) managed by Vanderbilt Capital Advisors, LLC (Vanderbilt) which closed Dec. 11, 2003. Lakeside is a static high grade CDO composed of approximately 44.04% collaterized debt obligations (CDO), 55.24% residential mortgage-backed securities (RMBS) and 0.72% commercial mortgage-backed securities (CMBS).

Since the last review in December 2005, Class A-1 has continued to delever, leading to higher credit enhancement levels for all classes. Further, the collateral has continued to perform. According to the May 30, 2006 trustee report, the Fitch weighted average rating factor is 0.54 ('AAA/AA+'), which is below its maximum covenant. There are no defaulted or distressed assets in the portfolio. The overcollateralization (OC) test is currently at 102.58%. The interest coverage (IC) test is at 105.97%. Both of these tests meet their respective covenants.

The rating of the class A-1 and A-2 notes addresses the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the class B notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings web site www.fitchratings.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Sept. 13, 2004, also available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.