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Downey Savings and Loan Association, F.A. Sells Downey Auto Finance Corp.

24 January 2000

Downey Savings and Loan Association, F.A. Sells Downey Auto Finance Corp.

    NEWPORT BEACH, Calif., Jan. 24 -- Downey Savings and Loan
Association, F.A. today signed a definitive agreement to sell its indirect
automobile finance subsidiary, Downey Auto Finance Corp., to Auto One
Acceptance Corporation (Dallas, TX), a subsidiary of California Federal Bank.
The sale is anticipated to close by the end of the first quarter.  The terms
of the transaction were not disclosed.
    "The sale of Downey Auto Finance provides additional capital to further
grow our residential home lending business through our internet, retail and
wholesale channels and expand the value of our community banking franchise,"
said Daniel D. Rosenthal, Downey's president and chief executive officer.
    Downey Savings and Loan Association, F.A., whose holding company is Downey
Financial Corp. (NYSE: DSL; PCX), has its headquarters in Newport Beach and
has helped California residents with their banking and borrowing needs for
over 42 years.  With assets over $9 billion, Downey Savings, an Equal Housing
Lender, has 104 locations throughout California and also offers home loans
nationwide.  The stock of Downey Financial Corp. is traded on the New York
Stock Exchange and Pacific Exchange under trading symbol "DSL."  The Downey
Savings corporate web site address is http://www.downeysavings.com.