Aames Financial Corporation Stockholders Approve Seven of Eight Proposals; Annual Meeting Adjourned Until September 24.

LOS ANGELES--(BUSINESS WIRE)--Sept. 14, 1999--

Aames Financial Corporation (NYSE:AAM), a leader in subprime home equity lending, announced Monday at the company's annual meeting that stockholders have overwhelmingly approved seven of eight proposals. The proposals approved relate to changes in the Certificate of Incorporation in connection with an investment by Capital Z Financial Services Fund II L.P. in the Company, election of directors, approval of a new stock option plan, and ratification of accountants.

Votes received for a proposal to increase the number of authorized shares of common stock were overwhelmingly in favor of the proposal, but the total number of votes cast fell short of the number required for approval, the Company said.

As a result of the insufficient votes cast, the Company has authorized that the polls be kept open for the Common Stock Proposal and that the annual meeting be adjourned until Friday, 10:00 a.m. (Los Angeles time) on September 24, 1999 at the Company's principal executive offices in Los Angeles, California.

"Many of our stockholders hold their shares through a broker, bank or other nominee who do not have the authority to vote on the Common Stock Proposal for the stockholders they represent unless specifically instructed to do so," said Steven M. Gluckstern, chairman of the board of directors. "We urge all stockholders who hold their shares through a broker, banker or nominee to contact their broker and instruct them to vote their shares before September 24, 1999."

Stockholders approved proposals electing Steven M. Gluckstern, Mani A. Sadeghi, Adam M. Mizel and David A. Spuria as Series B Directors, Eric C. Rahe as a Class III common stock director, ratification of Ernst & Young LLP as independent accountants, approval of the 1999 Stock Option plan, an increase in the authorized preferred stock and a 1,000-1 stock split of the outstanding preferred stock, an increase in the authorized preferred stock and an amendment of the outstanding preferred stock.

Aames Financial Corporation is a leading home equity lender, and currently operates 101 branches serving borrowers in 37 states, plus the District of Columbia. Its broker division operates 35 offices serving 28 states.

From time to time the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect the operations, performance and results of the Company's business include the following: negative cash flows and capital needs; delinquencies and losses in securitization trusts; negative impact on cash flow, right to terminate mortgage servicing; changes in interest rate environment; year 2000 compliance and technological enhancement; prepayment risk; basis risk; credit risk; risk of adverse changes in the secondary market for mortgage loans; dependence on funding sources; dependence on broker network; risks involved in commercial mortgage lending; strategic alternatives; competition; concentration of operations in California; timing of loan sales; economic conditions; contingent risks; and government regulation. For a more complete discussion of these risks and uncertainties, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations -- Risk Factors" in the Company's form 10-K for the fiscal year ended June 30, 1998 and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations -- Risk Factors" in form 10-Q for the quarters ended September 30, 1998, December 31, 1998 and March 31, 1999.