CONTIFINANCIAL CORPORATION ANNOUNCES INVESTMENTS IN FIRST SECURITY COMMERCIAL MORTGAGE COMPANIES.

NEW YORK, New York--(BUSINESS WIRE)--June 24, 1997--

ContiFinancial Corporation (NYSE:CFN) today announced the acquisition of a 33% equity interest in First Security Commercial Mortgage, L.P. and a 49% equity interest in First Security Commercial Mortgage Servicing, L.L.C. Terms of the acquisition were not disclosed. David M. Jackson, President and Chief Executive Officer, and Barry L. Powell, Executive Vice President, will continue to manage both First Security companies.

First Security Commercial Mortgage, with offices in Chicago, Phoenix and Boulder, originates commercial real estate mortgage loans through retail channels, a broker network and through a number of mortgage banking correspondents on a nationwide basis. First Security Commercial Mortgage Servicing currently services $353 million of loans, $322 million of which were originated by First Security Commercial Mortgage.

ContiFinancial and the First Security companies have had a working relationship since June 1994, with the latter having originated 135 loans in the amount of $363 million for ContiFinancial's ContiMAP(R) conduit, including $162 million in 1996 and $87 million in 1997 to date.

"Today's announcement marks a milestone for First Security Commercial Mortgage and its customers," said David M. Jackson. "Through this ownership interest, we will be more vertically integrated with ContiFinancial, and we will be able to make loans more efficiently to our customers throughout a growing number of targeted real estate markets. We also expect to enjoy increased loan volume as a result of ContiFinancial's equity investment. We are excited about the investment and our prospects for continued growth and diversification."

"This transaction will serve to cement a loan origination and securitization relationship with the First Security companies that began in 1993," noted Steven B. Wendel, Director of ContiFinancial Services Corporation, the NASD broker-dealer subsidiary of ContiFinancial Corporation. "First Security has been an important part of the ContiMAP(R) commercial mortgage lending and securitization program, and this equity investment enhances First Security's ability to continue its solid record of growth."

ContiMAP(R) will continue to purchase securitizable commercial real estate mortgage loans from First Security Commercial Mortgage. First Security initially originated primarily self-storage loans, but broadened its product line in 1996 to include other commercial real estate asset types including mobile home parks, multi-family, office, industrial, retail and hotels. Self-storage accounted for $247 million, or 68%, of First Security's originations since 1994. However, thus far in 1997, self-storage has accounted for less than 50% of originations.

ContiFinancial Corporation is a consumer and commercial finance company with headquarters in New York City. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, purchaser, seller and servicer of home equity loans made to borrowers whose borrowing needs may not be met by traditional financial institutions. In addition, ContiFinancial provides financing, securitization and, through ContiFinancial Services Corporation, bond placement services to originators of a broad range of loans, leases and receivables, including multi-family and other commercial real estate mortgage loans, home equity loans, adjustable rate mortgages, sub-prime and non-prime auto loans, home improvement loans, franchisee loans, time-share loans and equipment leases.

Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under the federal securities laws. There are many important factors that could cause ContiFinancial Corporation's and the First Security companies' actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, interest rate risk, prepayment speeds, delinquency and default rates, changes (legislative and otherwise) in the asset securitization industry, demand for ContiFinancial Corporation's and the First Security companies' services, the impact of certain covenants in loan agreements of ContiFinancial Corporation and Continental Grain Company, the degree to which ContiFinancial Corporation is leveraged, its needs for financing, and other risks identified in ContiFinancial Corporation's Securities and Exchange Commission filings.

CONTACT: Jerome M. Perelson Joseph Kist or Kerry O'Brien 

Senior Vice President Edelman Financial

ContiFinancial Corporation [phone] or

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