Well you can't really work fat off of specific areas but you can still lose fat without losing muscle. As a matter of fact I read a study the other day where:
Subjects ate 1700 cals daily, including 50g fat. One group ate .8g/kg of bodyweight in protein, the other group ate 1.5g/kg. The first supplemented 5g leucine daily, the second 10g.
Here were the results: http://www.t-nation.com/img/photos/0...t/image025.gif
It's from this article: http://www.t-nation.com/readTopic.do?id=1367018
What I am saying with all of this though is that you need to do the following things:
* Make sure your diet is in order, as your BF% drops it will get more difficult to lose weight. Aim for low calorie (1700 - 2000 per day) with 1.5 grams of protein per kg of bodyweight.
* Supplement with Fish Oils (6 grams per day), Leucine (10g per day), and a multivitamin
* Hit the gym plenty. Lift 2 or 3 days per week heavy. Do cardio (Run, Sprints, Complexes, etc) as much as you can on top. Aim for cardio 3-5 days per week (don't overdo it too fast). Also keep in mind that nothing burns calories better than HIIT sprints.