National City®

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"Today's environment requires aggressive steps to overcome the near-term challenges facing the industry and our company, while positioning our businesses to continue delivering solid performance," said National City Chairman, President and CEO Peter E. Raskind. "We fully recognize that the dividend is an important element of return for shareholders, and we did not take the decision to reduce it lightly. However, our Board and management strongly believe that this action is necessary to help meet the challenges ahead and to continue as a strong competitor in the financial services industry."

In addition to the dividend action, National City also intends to issue non-dilutive, Tier 1 capital in the first quarter of 2008. These actions will accelerate previously stated plans to increase capital ratios to the high end of their respective target ranges: 5 percent to 6 percent for tangible common equity and 7 percent to 8 percent for Tier 1 risk-based capital. The company has retained Goldman Sachs and Co. as capital advisor.

The foregoing actions follow a number of other steps taken in recent months to address the disruption in the mortgage, housing and credit markets. They have encompassed three major areas: augmenting the capital structure, restructuring mortgage operations and improving the core earnings power of the company. Specific actions have included the issuance of $500 million in hybrid capital securities last August and the restructuring and resizing of the company's mortgage operations.

    With respect to its mortgage operations, since August, National City has:

    -- Eliminated or restricted production of non-agency eligible mortgage
       loans
    -- Reduced staffing by some 1,700 positions, and
    -- Exited all broker-based mortgage lending, including today's
       announcement that National City Mortgage has shut down its wholesale
       mortgage division.

The decision to exit the wholesale mortgage channel will reduce staffing at National City Mortgage by an additional 900 positions. National City Mortgage will continue to originate mortgage loans directly to consumers in all 50 states through its retail office network, as well as through 1,400 National City Bank branches in nine states.

"We remain committed to the mortgage business, as the home mortgage is an essential consumer product," said Raskind. "However, it is clear that origination volumes will be lower going forward, and we are configuring our mortgage business to operate profitably in that environment."

As a result of the various product, pricing and channel initiatives, National City anticipates mortgage originations in 2008 of approximately $15 billion to $20 billion. With respect to loan portfolios related to previously exited segments of the mortgage business, the company has assembled a dedicated full-time team to manage those assets in the most effective manner possible. As previously disclosed, the company has significantly built reserves for expected losses on these portfolios.

National City also has undertaken several measures to improve both the level and momentum of earnings in its core banking businesses. Prominent among them was a company-wide expense reduction initiative in the third quarter of 2007 that reduced staffing in the core bank by approximately 800 positions. Combined with the mortgage reductions already in place, as well as those announced today, the company has reduced headcount by a total of 3,400 positions going into 2008.

"With conditions expected to be quite challenging in 2008, the actions we have taken to date better position us to navigate through the environment and to capitalize on the many opportunities ahead," said Raskind.

"To that end, we will maintain a relentless focus on our cost structure and on day-to-day execution of our strategies in each business. The foundation of our company remains strong. Our core retail, commercial banking and asset management businesses continue to deliver solid performance, with sound credit quality and steady growth in business and consumer relationships. I have every confidence that National City will emerge a stronger and more profitable company in 2008."

Forward-Looking Statements

This document contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. The forward- looking statements are based on management's expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation's ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation's business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2006, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC's Web site at www.sec.gov or on the Corporation's Web site at nationalcity.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.

About National City

National City Corporation (NYSE: NCC), headquartered in Cleveland, Ohio, is one of the nation's largest financial holding companies. The company operates through an extensive banking network primarily in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania and Wisconsin, and also serves customers in selected markets nationally. Its core businesses include commercial and retail banking, mortgage financing and servicing, consumer finance and asset management. For more information about National City, visit the company's Web site at www.nationalcity.com.

SOURCE National City Corporation

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