Bagnell & Eason, LLP and McGowan, Hood, Felder & Johnson Announce Partial Settlement, Proposed Certification of Settlement Class and Hearing.

NEW YORK -- Settlement Class Counsel announce that litigation is currently pending in the United States District Court for the District of South Carolina concerning The Thaxton Group, Inc. ("TGI") and its subsidiaries (with TGI, "Thaxton") and their subordinated note program in a class action entitled In re: The Thaxton Group, Inc. Securities Litigation, Case No.: 8:04-2612-13. The plaintiffs have agreed to settle with defendant FINOVA Capital Corporation ("FINOVA"), and the Court has certified a class for purposes of carrying out the proposed settlement (the "Settlement Class"). The Settlement Class consists of, collectively: (1) each person or entity that purchased any Thaxton note or other rights or claims arising from a Thaxton note at any time from any person or entity, including, without limitation, any note sellers and any claims traders; and (2) each person or entity that, as of October 31, 2006 and/or the effective date, holds any other unsecured claim against any of the Thaxton debtor parties. (A complete copy of the Master Settlement Agreement can be viewed on the website www.ThaxtonClassAction.com.)

The proposed settlement calls for FINOVA to release its claims and liens on certain of Thaxton's assets, and it will allow Thaxton to move forward to propose a bankruptcy plan to pay claims. This settlement is in addition to previously-announced settlements with other defendants. The Court has granted preliminary approval of this settlement and certification of the Settlement Class but still has to decide whether to grant final approval. This Notice contains a very brief summary of the terms of the settlement and does not in any way supersede or modify the terms of the Master Settlement Agreement. For complete detail regarding the settlement, please review the Master Settlement Agreement, available at the website address identified above.

If you are a member of the Settlement Class, and are subject to the terms and conditions of the settlement:

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure, that the Court will hold a hearing on January 18, 2007, at 9:30 a.m., at the G. Ross Anderson, Jr. Federal Building and United States Courthouse, 315 South McDuffe Street, 2nd Floor, Anderson, SC 29624. The purpose of this hearing is to determine whether the proposed settlements of the class action should be approved by the Court as fair, reasonable, and adequate, whether the requirements of Rule 23 of the Federal Rules of Civil Procedure have been satisfied as to the Settlement Class, and whether the applications for awards of attorneys' fees and reimbursement for expenses should be approved.

If you ever purchased or you currently hold a Thaxton subordinated note, any rights or claims arising from a Thaxton note, or are a Thaxton creditor, your rights may be affected and you may be entitled to money or benefits.

If you have not yet received and do not in the future receive in the mail the full "Notice of Settlement, Proposed Certification of Settlement Class, and Notice of Hearing," which describes in detail the settlement and your rights thereunder, you may obtain copies thereof by contacting Thaxton Securities Litigation by mail at: c/o Berdon Claims Administration, P.O. Box 9014, Jericho, NY 11753-8914; by phone at: 1-800-766-3330; by fax at: 1-516-931-0810; or by visiting the website www.berdonllp.com/claims.

You may get more information by calling toll-free 1-800-466-8660. You may also obtain information online at the website http://www.ThaxtonClassAction.com.

All members of the Settlement Class will be bound by the Court's judgment on the proposed settlement, and the releases contained in the settlement agreement, unless they request exclusion in writing postmarked by December 14, 2006, and/or take other actions as set forth in the full Notice.

Please do not contact the Court or the Clerk's office for information.