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Arcadia Financial Announces Second Quarter Earnings Update

22 July 1999

Arcadia Financial Announces Second Quarter Earnings Update; Company Expects to Report Earnings Between $0.35 and $0.40 Per Diluted Share

    MINNEAPOLIS, July 22 -- Arcadia Financial Ltd.
announced today that it expects to report earnings between $0.35 and
$0.40 per diluted share for the 1999 second quarter.  The company plans on
releasing its second quarter 1999 earnings, originally scheduled for today, no
later than Tuesday, July 27, 1999.
    The company's new auditors, Deloitte & Touche, have not completed their
review of the company's financial statements.  "The transition process between
our former auditors and our new auditors has taken more time than we had
originally expected.  We are very pleased about the second quarter and look
forward to getting our investors the complete information early next week,"
said Rich Greenawalt, Arcadia's Chief Executive Officer.
    Arcadia Financial Ltd. is a Minneapolis-based consumer financial services
company specializing in purchasing, selling and servicing retail installment
contracts for new and used automobiles originated in 45 states.  The company,
founded in 1990, is the nation's largest independent provider of automobile
financing.  Its 18 Regional Buying Centers are located in Arizona; northern
and southern California; Colorado; Florida; Georgia; Maryland; Massachusetts;
Minnesota; Missouri; New York; North Carolina; Ohio; Tennessee; north, south
and west Texas; and Washington.
    This news release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from historical results of from those results currently anticipated
or projected.  Such factors include, among other things, the following:
increased delinquency and loan loss rates; accounting changes; regulatory
changes; interest rate fluctuations; difficulties or delays in the
securitization of automobile loans; availability of adequate debt and equity
financing; general economic and business conditions; and other matters set
forth under the caption "Cautionary Statements" in exhibit 99.1 to the
Company's Annual Report on Form 10-K for the year ended December 31, 1998.