Westar Financial Seeks Strategic Alternatives

    TUMWATER, Wash.--Nov. 7, 2001--Westar Financial Services Incorporated (OTC: WEST), the leading automobile e-finance company, today reported that it is seeking to sell the rapidly growing and recently profitable firm.
    "The continued effects on the capital markets of the 9/11 disaster, coupled with the flight of commercial banks from the leasing sector, have created an environment where we cannot fund our transactions," said R. W. Christensen, Jr., President of Westar. "It is an extraordinary situation. Westar is able to generate record-breaking originations and record credit quality with the lowest risk profile in more than 20 years -- our delinquencies are currently running about 87 basis points -- but unable to secure adequate funding for them.
    "The capital markets remain in shock from the September attacks," he added. "Given that, we are soliciting interest from major institutions that wish to enter the prime consumer auto finance market at a high level. With more than 2,200 auto dealers under contract and a number of private label partners and opportunities, Westar's revenues grew to $147 million with earnings of $2.2 million in the quarter ended September 30, 2001. Our originations were not significantly affected by the September events. For a firm with a need for assets and substantial reported income, Westar represents a unique opportunity.
    "In today's chaotic environment, there can be no guarantee that a buyer of Westar will be found," Christensen added.
    WEST is the leading publicly traded automobile-oriented e-commerce financial portal and ASP. Westar originates, decisions, commits to and fulfills consumer financings for itself or others. Westar completed the first entirely electronic Internet automobile purchase and lease transaction in October 1999. The company operates in the western states and nationally through alliances with AmSouth Bancorporation, USAA FSB, LeaseBanc and others. For more information on WEST visit www.westarfinancial.com.

    Statement regarding "Forward Looking Statements": Statements concerning future performance, developments or events, levels, expansion of operations, growth of consumer financial originations, quality of the company's lease portfolio, the ability to place securitizations, success of the e-commerce model, trends in interest rates, overhead expense variations, results of the interim audit including calculations of earnings per diluted weighted average shares, various statements concerning expectations for growth or profits and any other guidance on future periods, constitute forward-looking statements which are subject to a number of risks and uncertainties which might cause actual results to differ materially from stated expectations.