Advanced Financial Inc. reports increased operating revenues for three months ended June 30, 1996.

SHAWNEE, Kansas--(BUSINESS WIRE)--Aug. 15, 1996--Advanced Financial Inc. (ASE:AVF), a full service residential mortgage banking company, reported operating results for the three months ended June 30, 1996.

Total revenues for the quarter ended June 30, 1996, increased to $1,662,485 from $1,600,195 for the comparable quarter in 1995, a 3.9% increase.

The company reported a net loss for the quarter ended June 30, 1996, of $562,130 or ($0.15) per share, versus a loss of $687,354 or ($0.19) per share for the comparable quarter in 1995. The company had hoped to book the sale of mortgage servicing rights during this period for a gain on such sale of approximately $750,000 before tax and approximately $250,000 after tax. Due to a delay in completing this sale during the quarter, the gain will be recognized in the quarter ending Sept. 30, 1996.

The company continues to improve its operating results primarily from increased mortgage loan production, which totaled approximately $44.4 million for the quarter and three months ended June 30, 1996 compared to $21.3 million for the comparable period in 1995.

Bill Moffatt, president of the company's AFI Mortgage Corp. subsidiary stated: "The quarter ending in June 1996 showed some improvement over the same period a year ago, and I anticipate this trend to continue. After 120 days on the job, I have a solid grasp of our problems and opportunities and AFI has taken a major step forward during the past few months by adding outside experienced leadership to turn around the company. We have made numerous changes in job responsibilities, along with a major change in our representation on the board of directors and our management has taken salary reductions until we return to profitability. I believe that with the completion of our servicing sale that will take place in the quarter ending Sept. 30, 1996, AFI will post a pre-tax profit during this period. The strategic decision to sell servicing will allow us to pay off existing debt and simultaneously eliminate our monthly amortization and interest expense associated with such servicing rights. Above all else, the management and I are committed to restoring profitability and increasing shareholders value and I believe we are taking the steps to achieve these goals."

Advanced Financial Inc. (AFI) is an American Stock Exchange listed holding company with its principal operations conducted through the wholly owned AFI Mortgage Corp. subsidiary, is a full service residential mortgage banking company originating and servicing single-family first- and second-mortgage loans. -0-

                   ADVANCED FINANCIAL INC.
                     Financial Summary
                Three months ended June 30, 1996

                                June 30, 1996         June 30, 1995
                                 (unaudited)           (unaudited)

Revenues                           1,662,485             1,600,195
Servicing Expenses                   139,581               313,830
Personnel                          1,019,983               867,581
G & A (including other)              455,832               502,410
Depreciation & Amortization          387,030               450,427
Interest Expense                     222,189               153,301
Net Loss                            (562,130)             (687,354)
Weighted Average Shares            3,819,563             3,775,600
Earings per share                      (0.15)                (0.19)

                                June 30, 1996         March 31, 1996
                                 (unaudited)             (Audited)

Total Assets                      19,680,902            17,313,516
Total Liabilities                 19,264,703            16,335,187
Total Stockholders Equity            416,199               978,329

CONTACT: Advanced Financial Inc., Shawnee

Brad Morris, Secretary/Treasurer

913/441-2466