Westar Financial Files for Reorganization Under Chapter 11

    TUMWATER, Wash.--Dec. 22, 2001--Westar Financial Services Incorporated (OTC: WEST) today reported that it has filed for reorganization protection under Chapter 11 of the Bankruptcy Code.
    Until November 7th of this year, Westar was a leading originator of prime credit auto leases. It reported revenues in its second fiscal quarter ended September 30 of more than $147 million and earnings of $2.3 million. It currently services more than 25,000 accounts valued at more than $625 million of leases for its own account and others.
    On November 7, 2001, Westar was notified by Bank One of an alleged event of default on its credit facility on the basis that Westar had failed to complete a term securitization within the timeframe demanded by Bank One. Pursuant to this declaration of default, Bank One terminated its obligation under the credit facility to make further loans to Westar.
    Despite Westar's profitable operations and the high quality of its lease production, Bank One has ceased its six-year participation in the market for automobile leases originated by Westar and is attempting to transfer servicing from Westar to a third party servicer. As a result of Bank One's actions, Westar ceased originating automobile leases.
    "A Chapter 11 filing is always disappointing to those involved, but it seems extraordinarily so to those of us who've managed, worked with, or invested in a firm as successful as Westar proved to be," said R. W. Christensen, Jr., Westar's CEO. "Team Westar built a world-class origination and servicing platform, capable of extraordinary performance on an ordinary basis. To see it cease most of its business activities is heartrending.
    "We filed to protect Westar's servicing and portfolio interests from the millions of dollars of damage we believe a transfer of servicing would cause. Bank One is trying to force a transfer of servicing that would add millions in damages to those Westar has already incurred. We will use the protection afforded by the courts to not only arrange an orderly plan to protect all of the creditors of Westar and its shareholders, but also as a first step to recoup the value of Westar's investment in the assets it has created," he added.

    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.