Shareholder Notice: Zwerling, Schachter & Zwerling, LLP Files Shareholder Class Action Against New Century Financial Corporation (NEW)

NEW YORK, March 5 /PRNewswire/ -- Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of all persons and entities who purchased the securities of New Century Financial Corp. ("New Century" or the "Company") during the period from May 4, 2006 through February 7, 2007 (the "Class Period"). The deadline to file a motion seeking to be appointed lead plaintiff is April 10, 2007.

If you purchased the securities of New Century during the Class Period, you may apply to serve as lead plaintiff. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the class are protected. You may apply to be appointed lead plaintiff through Zwerling Schachter.

If you wish to discuss this action or have any questions concerning your rights and interests with respect to this securities litigation matter, please contact Kevin McGee, Esq. at Zwerling Schachter, 1-800-721-3900, or by e-mail at kmcgee@zsz.com.

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that New Century was forced to restate its financial results for the first three quarters of 2006 because the Company had 1) failed to reserve adequately for all of the non-performing mortgages it was forced to repurchase, and 2) failed to account properly for the reduction in value of the mortgages repurchased. The Company acknowledged that its previously-issued financial statements for the quarters ending March 31, 2006, June 30, 2006 and September 30, 2006 could no longer be relied upon. New Century is also expected to report a net loss for the quarter ended December 31, 2006, due to the same reasons that lead to the restatement of its financial results.

In response to the announcement regarding the restatement, on February 8, 2007, New Century's common stock dropped $10.92, a decline of over 36%, on volume of 25 million shares. Finally, on March 2, 2007, in a filing with the Securities & Exchange Commission, New Century stated that it was out of compliance with debt covenants and had received waivers from only six out of eleven of its lenders. The Company warned that if it were unable to reach agreements with the remaining lenders, the Company's auditor will include an explanatory paragraph on the Company's financial statements indicating that substantial doubt exists as to the Company's ability to continue as a going concern. On March 5, 2007, New Century's common stock dropped more than 60% to a low of $5.25.

Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Uniondale, New York, Boca Raton, Florida and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.

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