New Century Financial Corporation (NYSE: NEW), a real estate investment trust (REIT) and parent company of one of the nation's premier mortgage finance companies, today announced that total loan production for May 2006 was $5.5 billion, a 28 percent increase over May 2005.

"We delivered strong loan production results for May 2006, including $4.7 billion in non-prime loan production and $0.8 billion in prime and Alt-A loan production, representing 15 and 33 percent growth over April 2006, respectively," said Robert K. Cole, Chairman and Chief Executive Officer. "Additionally, our weighted average coupon for non-prime loan production in May 2006 was 8.5 percent.

"I'm also pleased to announce that we priced our first Alt-A securitization today, which we anticipate will close later in the month. This $521 million transaction demonstrates our ability to leverage our exit channels, maximizes secondary market execution and diversifies our REIT portfolio of mortgage loans with a new asset class."

About New Century Financial Corporation

Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation is a real estate investment trust and one of the nation's premier mortgage finance companies, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. New Century is committed to serving the communities in which it operates with fair and responsible lending practices. To find out more about New Century, please visit http://www.ncen.com.

Safe Harbor Regarding Forward-Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws and the company intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to, the company's expectation that its Alt-A securitization will close later in the month. The company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements. Such factors include, but are not limited to: (i) the condition of the U.S. economy and financial system; (ii) the interest rate environment; (iii) the effect of increasing competition in the company's sector; (iv) the stability of residential property values; (v) the ability of the company to close on its forward loan-sale commitments at its projected gain-on-sale executions; (vi) the potential effect of new state or federal laws and regulations; (vii) the outcome of litigation or regulatory actions pending against the company; and (viii) the company's ability to maintain adequate credit facilities to finance its business. Additional information on these and other factors is contained in the company's Annual Report on Form 10-K for the year ended December 31, 2005 and the other periodic filings of the company with the Securities and Exchange Commission. The company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Mortgage Loan Production Data

(in billions)

April 2006 April 2005

Wholesale Retail Total Wholesale Retail Total % Change

Non-Prime $3.8 0.3 4.1 4.0 0.5 4.5 -8.9%

Prime and Alt-A 0.2 0.4 0.6 -- -- -- N/A

Total $4.0 0.7 4.7 4.0 0.5 4.5 4.4%

May 2006 May 2005

Wholesale Retail Total Wholesale Retail Total % Change

Non-Prime $4.3 0.4 4.7 3.9 0.4 4.3 9.3%

Prime and Alt-A 0.3 0.5 0.8 -- -- -- N/A

Total $4.6 0.9 5.5 3.9 0.4 4.3 27.9%