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MFN Financial Corp. to Sell Certain Non-Automotive Locations

29 July 1999

MFN Financial Corp. to Sell Certain Non-Automotive Locations

    LAKE FOREST, Ill.--July 29, 1999--MFN Financial Corp. (OTC BB:MFNF) announced today that it has entered into a definitive agreement to sell substantially all of the non-automotive loan accounts and certain other assets of 47 direct loan offices of subsidiaries located in Texas, Louisiana, Mississippi and Alabama, to First Tower Corp. of Jackson, Miss.
    The gross receivables of the 47 branches totaled $46,675,000 at June 30, 1999, and represent approximately 6.2% of MFN's total gross receivables at that date. The transaction will be for cash, and is subject to regulatory approval and other conditions. Employees of branches sold are expected to be offered employment with First Tower.
    The parties anticipate closing in the third quarter of this year. After the sale, MFN will have 57 active subsidiary branches located in 20 states. These offices will continue to focus primarily on the purchase of automobile retail installation contracts.
    Edward G. Harshfield, chairman and CEO, in making the announcement, said, "MFN Financial has historically been a specialist in auto lending through its Mercury Finance subsidiaries and its core strengths are in that area. The offices being sold do not fit the strategic focus of the company, which is the purchasing of automobile retail installment contracts."