Atherton Capital Completes $201 Million Securitization

10 August 1998

Atherton Capital Completes $201 Million Securitization Comprised of 15 Franchise Concepts

    SAN BRUNO, Calif.--Aug. 10, 1998--

    National Franchise Lender Closes On Quick Service, Family and
    Casual Dining Restaurants and Automotive Services Portfolio

    Atherton Capital Incorporated has completed a $201 million securitized private placement consisting of 312 franchise loans originated and funded to select franchisees of Arby's, Burger King, Dairy Queen, Denny's, El Pollo Loco, IHOP, Jiffy Lube, KFC, Midas Mufflers, Papa John's Pizza, Pizza Hut, Shoneys, Sonic, Taco Bell, TGI Friday's, and Wendy's.
    PaineWebber placed the securities, which were collateralized by 98 fee mortgage loans, 177 first leasehold mortgage or third party lessor loans, 27 franchisor lease loans, and 10 ground leases. The Class A notes were rated triple-A by Standard and Poor's, Duff & Phelps and Fitch IBCA.
    David L. Elder, CEO of Atherton said, "This transaction further demonstrates the market's confidence in quality pools of loans made to select franchisees of multi-unit global brands. Atherton Capital continues to deliver the loan products our customers want furthering its commitment to being a leading financial source for business capital."
    Atherton Capital Incorporated, a San Francisco Bay Area based specialty commercial finance company, is focused on providing commercial financing for the complete range of growth opportunities for owners, franchisees and investors in businesses. Financing programs include debt refinancing, acquisition of existing units, new store development and construction, real estate acquisitions, equipment purchases, store improvements and leasing.
    Atherton has provided business and franchise financing nationally to over 250 operators of quick service and casual dining restaurants, retail energy and convenience store operators, video stores and specialty retail outlets. Atherton originates loan products throughout 12 locations serving eight regions, including Atlanta, Chicago, Denver, Greenwich, Los Angeles, Minneapolis, San Francisco and Seattle.
    Readers are cautioned not to place undue reliance on the forward-looking statements included in this press release, which reflect management's judgment based on factors currently known, as of the date hereof, and which may involve risk and uncertainties. Actual results may differ materially. The company undertakes no obligation to publicly release any revisions to the forward-looking statements or to update them to reflect events or circumstances occurring after the date of this release.