Cal Fed Investments Hits Half-Billion Dollars in Sales.

SAN FRANCISCO--(BUSINESS WIRE)--July 9, 1999--

Cal Fed Investments, the investment subsidiary of California Federal Bank (Cal Fed), sold $551 million in investment products in the first half of 1999, beating first half sales for 1998 of $348 million by 58 percent.

"We're enjoying the impact of our larger, well-motivated sales force," explains John LaSalle, senior vice president in charge of sales for Cal Fed Investments. "Our goal is to sell a billion dollars in investments in 1999, and it looks like we'll do that easily."

Cal Fed merged in September 1998 with Glendale Federal Bank to form the second-largest thrift in the U.S., with approximately $55 billion in assets. Cal Fed Investments merged with GlenFed Brokerage in November of 1998, when Glendale Federal Bank branches adopted Cal Fed's computer systems. Approximately 28 percent of Cal Fed's customer banking fee income for 1998 came from investment sales.

"We now have 1,000 employees who are licensed to sell securities," LaSalle continued. "That's far more licensed employees than our largest bank competitors have. The success of our program is proving to us that people like the convenience of handling their investments where they bank."

Cal Fed Investments representatives operate through California Federal Bank's 354 branches in California and Nevada. The representatives offer a broad array of investments, including mutual funds, tax deferred annuities and bond funds, and the experience to help clients determine which products will best help them meet their goals.

California Federal Bank is a subsidiary of San Francisco-based Golden State Bancorp Inc., a public holding company which trades on the New York Stock Exchange under the symbol GSB. Cal Fed is a full-service community-oriented bank providing personalized service to consumers and businesses. For more information on the companies, see the Cal Fed web site at www.calfed.com and the Golden State Bancorp site at www.goldenstatebancorp.com.