Former DFCU Financial Board Chairman Speaks Out for DFCU Owners United; Credit Union Members Are Urged to Request More Information about Proposed Conversion to a Bank

DEARBORN, Mich.--Feb. 2, 20062, 2006--How will members of DFCU Financial, Michigan's largest not-for-profit credit union, benefit if the financial cooperative becomes a mutual savings bank? This is the question that Linda Malec, former volunteer board chairman, wants each of the credit union's nearly 160,000 members to ask.

"I am extremely concerned about the recent application, approved by current directors, to convert to a mutual savings bank," said Malec. "And I'm even more concerned about the lack of communication from board members and executive management to members."

Malec, who previously served 20 years on DFCU Financial's board of directors and chaired the board for more than ten years, wants answers. She is now serving as spokesperson for a grassroots member group called DFCU Owners United.

The purpose of DFCU Owners United is to help members become fully informed about the proposed conversion before they are asked to vote. In a federally chartered credit union, the conversion can take place with a simple majority of only those who vote.

At DFCU Financial's annual membership meeting on February 15, members were told that the conversion to a mutual savings bank would simply be a change in the "legal structure."

"That's a grave over-simplification of a very complex issue," said Malec. "The bottom line should be what's in it for the members. Personally, I'm not aware of any benefits."

DFCU Owners United has established a website www.savemycu.com to provide more information and to seek member comments.

At the annual membership meeting, Donald J. MacKinnon, former general manager of DFCU, proposed a motion to "Recommend to the Board of Directors that the application for charter conversion be withdrawn." The motion was seconded and passed by a two to one majority of members present.

Malec pointed out that although the motion was made and passed, only a very small percentage of members attended the meeting. "More members need to be aware of this so they can thoroughly review any disclosure information that they receive from DFCU Financial and make an informed decision when it comes time to vote."

Ford Motor Company employees comprise a key segment of DFCU Financial's member population along with Visteon Corp., Henry Ford Health System and Oakwood Healthcare System.

DFCU Owners United invites members to visit the www.savemycu.com website and to send their comments to the Board of Directors and Supervisory Committee at DFCU Financial, P.O. Box 6048, Dearborn, MI 48121-6048.