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Prudential Insurance to Invest $10 Million in Westar Financial

10 October 1997

Prudential Insurance to Invest $10 Million in Westar Financial; Becoming Westar's Largest Shareholder 

    OLYMPIA, Wash., Oct. 10 -- Westar Financial Services
Incorporated (OTC: WEST), a prime-credit auto lessor, reported that Prudential
Insurance Co. has agreed to invest $10 million in Westar to fund the company's
growth beyond the Pacific Northwest.  As a result, Prudential will become
Westar's single largest shareholder.
    The $10 million provided by Prudential will be used to fund Westar's entry
into a new regional market in the Western US before year-end, with further
regional expansion planned during 1998.
     "We believe the quality of our strategic partnerships is the most
compelling testimony to Westar's vision of becoming the first national
independent auto lease finance company within the next five years," Robert W.
Christensen, Jr., President & CEO said.  "In less than two years, we have
forged strong relations with three -- now four -- of the world's leading
financial institutions and now have more than $250 million of on-line
financing capacity."
    The agreement in principle calls for Westar to sell secured subordinated
notes with an initial $10 million face value, plus warrants, to Prudential.
The deal is expected to close by the end of October.
    Westar has previously reported that The Industrial Bank of Japan (sixth
largest bank in the world) has committed to place up to $200 million of
Westar's securities backed by auto lease receivables at favorable terms; Bank
One, Columbus, NA (the leading provider of lease financing packages) has
extended Westar's line of credit to $25 million, based on corporate
performance; and, MBIA Insurance chose Westar as the first company ever to
receive coveted MBIA bond insurance on auto leases.  Westar has a $250 million
agreement with MBIA to insure its investment packages.
    "As a result of our early affiliations, Westar's securitization portfolios
have received 'Triple A' ratings from both Standard & Poor's and Moody's,"
Christensen noted.  "Now, Prudential Insurance has elected to provide
$10 million to launch our growth beyond the Pacific Northwest -- where we
achieved business relationships with 43% of the auto dealers in less than two
years.  The potential offered by our geographic expansion is especially
exciting, based on the financial capacity this new relationship provides us."
    Westar is the only publicly-traded company focused on prime credit auto
leases.  Its re-useable Carlson Trust securitization structure is cheaper and
simpler than programs offered by the company's competition.
    A recent article in the Puget Sound Business Journal noted that Rod Couts,
executive director of the National Vehicle Leasing Association (NVLA),
believes Westar can pull off its growth plans based on Christensen's ability
and ingenuity and on the "extremely innovative" securitization structure
Westar has developed.  Christensen was president of the NVLA from 1985 through
1987; it is the largest trade association in the auto finance industry, with
more than 500 member firms.
    "As in strategic alliances, Westar strives for the highest-quality
employees," Christensen added.  In mid-August, Westar hired Pete Kanatzar
-- viewed as the most knowledgeable consumer and auto finance credit person in
the US -- who was then a top-ranked executive with NationsCredit.
NationsCredit is a unit of NationsBank , the fourth largest bank in
the US.
    As Westar's VP-Risk Management, Kanatzar will develop a variety of new
leasing products expected to add significant growth.  "We'll begin announcing
several new products during the next two-three months," Christensen said.  "We
are proud that Pete joined our management team and shares Westar's vision.  We
look forward to becoming an ever-more-visible part of the financial services
industry."
    Westar Financial Services Incorporated is a fast-growing, Washington-based
automobile finance company focused solely on the prime-credit segment of the
$100-billion auto-lease finance market.  Full-scale activities through its
innovative Dealer-Direct Retail Leasing(TM) (DDRL) program began in October
1995 to selected, high-quality automobile dealers in the Pacific Northwest.
Westar's shares are traded over-the-counter by Hoefer & Arnett, San Francisco
and Hill Thompson, Jersey City.  WEST shares most recently traded at
$5.375 per share.
    Statement regarding "Forward Looking Statements":  This announcement
includes statements that include forward-looking statements which are subject
to a number of risks and uncertainties, including the ability to successfully
enter and penetrate new markets and complete future financings, which might
cause actual results to differ materially from stated expectations.
    News on Call:  Press releases are available at no cost through Internet at
 http://www.prnewswire.com/cnoc/exec/menu?110282 or call News on Call fax service at
800-IRNEWS-9 (800-476-3979), extension 110282.

SOURCE  Westar Financial Services Incorporated