American Savings Bank and American Financial Holdings, Inc. Receive Final Regulatory Clearance for Conversionto Stock Savings Bank.

NEW BRITAIN, Conn.--(BUSINESS WIRE)--Nov. 30, 1999--

American Savings Bank and American Financial Holdings, Inc. announced today that, on November 30, 1999, the Connecticut Banking Commissioner and the Federal Deposit Insurance Corporation provided final regulatory clearance of the appraisal of the pro forma market value of the common stock of American Financial Holdings, Inc.

The final appraisal indicates a pro forma market value of the common stock to be sold in the conversion of $267,325,000, or 26,732,500 shares of common stock at a price of $10.00 per share.

In addition to the stock sold in the conversion, American Savings Charitable Foundation, a charitable foundation established for the benefit of the communities in which the Bank operates, has been established and will receive a contribution from the Company of 2,138,600 shares of common stock.

American Financial Holdings, Inc. received orders for approximately $229,288,370 in the subscription offering, which expired on November 9, 1999, and an additional $114,333,590 of orders in the direct community offering, which expired on November 16, 1999.

All stock orders received will be filled in accordance with the priorities and procedures set forth in American Savings Bank's Plan of Conversion, as amended.

Based on the amount of stock subscriptions received, it is expected that the Bank's Employee Stock Ownership Plan will purchase 1,336,625 shares in the subscription offering and an additional 973,063 shares through open market purchases after the completion of the conversion.

American Financial Holdings, Inc. expects that its common stock will begin trading this afternoon on the Nasdaq National Market under the symbol "AMFH." Subscribers for the common stock of American Financial Holdings, Inc. may obtain information about their specific stock allocations and other information about the offering by contacting the Bank's conversion center at 860/612-2733.

Established in 1862, American Savings is one of Connecticut's oldest and largest independent banks. With the close of the conversion, it is the third-largest public banking institution based in Connecticut, behind only Peoples Bank (MHC) and Webster Financial Corp. Headquartered in New Britain, American Savings currently has 17 branches in 12 communities throughout central Connecticut.

The Bank's mission is to continue to operate as an independent bank, delivering quality customer service and offering a wide spectrum of competitively priced financial services to customers. As a community-based bank, American Savings is committed to the betterment of the communities it serves.