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Westar Financial Redeems Preferred Shares Early

13 May 1998

Westar Financial Redeems Series 1,2 and 3 Preferred Shares Early

    OLYMPIA, Wash., May 13 -- Westar Financial Services
Incorporated (OTC: WEST), a prime-credit auto lessor, announced that preferred
shareholders have accepted the company's offer to redeem their shares of its
Series 1, Series 2 and Series 3 Preferred at face value and ahead of schedule.
Originally, the 2,823 shares of Series 1, 2 and 3 Preferred Stock were to be
redeemed by December 31, 2000.
    As part of the redemption, the preferred shareholders exercised their
warrants to purchase Westar's common stock.  The Preferred Stock paid a
cumulative quarterly dividend of $23.125 per share.  An exchange offer and
this early redemption will save the company approximately $260,000 per year in
dividend expenses.  The company will issue approximately 50,000 common shares
relative to the exchange.
    "This redemption and exchange offer modifies Westar's capital structure,
positioning the company for future growth and expansion," said Robert W.
Christensen, Jr., President & CEO.  "In addition, through the exchange offer
existing preferred shareholders, the long-term supporters of our company, were
able to acquire large amounts of common stock without unduly influencing the
price.  They now have the opportunity to hold an investment that better
reflects market value, improves liquidity and may increase their ultimate
returns.
    "We appreciate the support of our preferred shareholders during our
company's development stage and we are pleased that we are able to redeem
their shares early," he added.  "We also are delighted that preferred
shareholders elected to exercise their warrants to become holders of Westar's
common stock and thereby participate in our anticipated long-term growth."
Westar has previously announced plans to leverage its success in the Pacific
Northwest by expanding into the Southwest, through a new regional hub in
Phoenix, later this year.
    Westar Financial Services Incorporated is a fast-growing, Washington-based
automobile finance company focused solely on the prime-credit segment of the
$110-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;
Hill Thompson, Jersey City; and Monroe Securities, Rochester, NY.  WEST shares
most recently traded at $3.00 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.  These include the ability to
successfully enter and penetrate the Southwestern Region and complete future
financings, which might cause actual results to differ materially from stated
expectations.
    NOTE:  This company is a client of Len Cereghino & Co. Corporate Investor
Relations.  Westar Financial's press releases are available at no charge
through PR Newswire's Company News On-Call fax service.  For a menu of Westar
Financial press releases or to retrieve a specific release, call 800-IRNEWS9,
extension 110282, or http://www.prnewswire.com/cnoc/exec/menu?110282 on the
Internet.

SOURCE  Westar Financial Services Inc.