X0202 3 2006-11-09 0 0001304623 ACA Capital Holdings Inc ACA 0001292513 Fortress Investment Holdings LLC 1345 AVENUE OF THE AMERICAS, 46TH FLOOR NEW YORK NY 10105 0 0 0 1 See "Remarks" 0001245521 FORTRESS INVESTMENT GROUP LLC 1345 AVENUE OF THE AMERICAS 46TH FLOOR NEW YORK NY 10105 0 0 0 1 See "Remarks" 0001252267 DRAWBRIDGE SPECIAL OPPORTUNITIES ADVISORS LLC C/O FORTRESS INVESTMENT GROUP LLC 1345 AVENUE OF THE AMERICAS, 46TH FLOOR NEW YORK NY 10105 0 0 0 1 See "Remarks" Series B Senior Convertible Preferred Stock Common Stock 963236.47 I By Drawbridge Special Opportunities Fund The convertible preferred stock has no expiration date and, upon the closing of the initial public offering of the issuer will convert into shares of the issuer's common stock on a six-for-one basis. Drawbridge Special Opportunities GP LLC ("Special Opportunities GP") is the general partner of Drawbridge Special Opportunities Fund LP ("Special Opportunities LP"). Fortress Principal Investment Holdings IV LLC ("FPIH IV") is the sole managing member of Special Opportunities GP. Pursuant to management agreements, Drawbridge Special Opportunities Advisors LLC ("Special Opportunities Advisors") is the manager of Special Opportunities LP. Fortress Investment Group LLC ("FIG") is the sole managing member of Special Opportunities Advisors. FIG is 100% owned by Fortress Investment Holdings LLC. Each reporting person disclaims beneficial ownership of all reported shares except to the extent of its pecuniary interest therein and the inclusion of the shares in this report shall not be deemed an admission of beneficial ownership of all of the reported shares for purposes of Section 16 or otherwise. The reporting persons may be deemed a member of a Section 13(d) "group" pursuant to the issuer's stockholders agreement. The reporting persons disclaim membership in a "group" and disclaim beneficial ownership of the shares beneficially owned by such other persons. See signatures included in Exhibit 99.1 2006-11-09