UPDATE: Imperial Capital Reports Securing of $110M Credit Facility

Imperial Holdings, Inc.

("Imperial") announced today that one of its affiliates has obtained a seven-year, $110 million credit facility, secured by a portfolio of 159 of Imperial's life insurance policies having an aggregate face value of $608 million. Borrowings under the credit facility will bear interest at a floating rate, initially set at 5.5%, with a lender participation of 5% of the policy proceeds for the term of the loan. Antony Mitchell, Chief Executive Officer of Imperial, commented: "This transaction accomplishes several important goals. First, by redeeming all $50 million of our 12.875% senior secured notes, we will reduce our cost of capital. Second, by securing sufficient capital to make premium payments, we have locked in the value of nearly our entire balance sheet. Third, we expect the credit facility to provide Imperial with meaningful cash flows in the near term and increased cash flows over time. Finally, we anticipate that the credit facility will allow Imperial to make opportunistic investments in life settlements." For more information on the credit facility, investors are encouraged to read Imperial's Form 8-K filed today with the Securities and Exchange Commission.