Advanta Issues 1999 Earnings Guidance.

SPRING HOUSE, Pa.--(BUSINESS WIRE)--Nov. 11, 1998--Advanta Corp. (NASDAQ: ADVNB; ADVNA; ADVNZ) at a meeting Wednesday with analysts and investors, will provide earnings guidance for its 1999 fiscal year and will follow-up on its announcement to report income for its mortgage business that is essentially equal to that of a portfolio lender.

As promised during its third quarter earnings call, the Company will provide additional information regarding its funding strategies, profitability goals and operating objectives.

In 1999, the Company plans to grow its managed receivables by 20% to 30%. In addition, it plans to increase net interest margins and realize further operating efficiencies.

As a result, returns on managed assets are expected to improve in 1999 by 20 bps to 40 bps compared to pro forma 1998 operating results using the Company's new funding and reporting approach. The Company expects its effective income tax rate in 1999 to approximate the Company's federal and state statutory rates.

"We are continuing to build an enduring, successful enterprise that is very focused on increasing profitability and providing long-term shareholder value," said Dennis Alter, Chairman and CEO of Advanta.

"To accomplish this, we will take advantage of our strong cash and capital positions and fundamental core competencies including decades of direct marketing expertise and analytic skills."

Advanta is a highly focused financial services company with 2,600 employees, over $11.0 billion in managed assets and an additional $7.6 billion in assets serviced for third parties. Advanta provides consumers and small businesses with innovative products and services including mortgages, equipment leases, business credit cards, insurance and deposit products.

The Company also provides a full range of loan purchasing, contract servicing and securitization services to the mortgage industry.

This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected.

The most significant among these risks and uncertainties are: (1) the Company's managed net interest margin; (2) factors that affect consumer debt; (3) competitive pressures; (4) the level of delinquencies and charge-offs; (5) the rate of prepayments; (6) interest rate fluctuations; (7) the level of expenses; (8) receivables origination volume; (9) the timing of the securitizations of the Company's receivables; (10) the effects of government regulation; (11) the amount and cost of financing available to the Company, and (12) the ratings on the debt of the Company and its subsidiaries.

Additional risks that may affect the Company's future performance are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.