Westar Financial Reports Managed Assets Exceed $500 Million

    TUMWATER, Wash.--June 19, 2001--Westar Financial Services Incorporated (OTC:WEST), the leading automobile e-finance company, today reported that its portfolio of managed assets now exceeds $500 million, fueled by rapidly accelerating Private Label activity through its financial portal. At March 31, 2001 the face value of the accounts serviced by the company was $410 million, up from $201 million at March 31, 2000.
    Westar provides a unique spectrum of services for consumer financing transactions, including origination, decisioning, commitment and fulfillment. In February 2000, the company launched its Private Label services to offer its elegant technology solutions for auto financing to major financial institutions. Amsouth Bancorporation , the nation's 25th largest bank, was the first institution to participate in Westar's Private Label program. Mellon Bank , the nation's 21st largest bank, initiated the program in September 2000 and USAA, FSB, headquartered in San Antonio and the 18th largest thrift in the country, will launch in July 2001.
    "The phenomenal growth in managed assets, which are reflected in our revenue growth of 300% per year, coupled with solid margins and asset quality, validates our business model, competitive niche and the scalability of Westar's proprietary systems and processes," said Scott Cavanaugh, Vice President -- Customer Service. "It is a unique experience in my years in financial services as Westar is melding its growth with widening margins and strong quality. That combination, along with the operating efficiency we spent three years building, is beginning to reflect in our bottom line.
    "We manage the vast majority of the assets we produce and are paid accordingly. Over time, servicing income has begun to add up to a substantial sum and offsets a significant percentage of our operating expense, further reducing our breakeven point in terms of originations. Credit quality plays a real role, too. Our March 31 delinquency level of 1.17% and credit losses of .51% help hold down our expense burden and contributes to a strong bottom line."
    "Westar's Private Label product has great appeal to banks who are seeking technology solutions that also provide high-touch customer service that can be rapidly instituted to replace balance sheet exposure or internal bottlenecks with substantial fee income," according to Darcy Huffman, Team Leader of Westar's Strategic Asset Group. "Consequently, we are seeing increasing interest by financial institutions in our business model and are negotiating now with several additional top-tier financial institutions that have requested our Private Label services," she added.