Cal Fed Purchases 12 Nevada Branches from Norwest.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 2, 1998--California Federal Bank today announced that it has signed a definitive agreement to acquire 12 branch offices with approximately $637 million in deposits from Norwest Bank Nevada, a subsidiary of Norwest Corporation.

The purchase is subject to regulatory approvals and is expected to be completed in April 1999.

Most of the branches are located in and around Las Vegas and Reno, with four branches in outlying areas -- Elko, West Fallon, Winnemucca and Yerington. Cal Fed, which currently has 7 branches in Nevada, will move from sixth to third in deposit market share in the state.

"We're delighted to expand our presence in Nevada," said Carl Webb, Cal Fed's president and chief operating officer. "This acquisition will enable us to better serve customers in this growing state and is in keeping with our strategy to concentrate our branches in the West. We can now offer more Nevada residents the greater convenience of more locations combined with our commitment to personalized community banking."

"I'm pleased to note that we expect to make job offers to all of the employees in these branches," said Scott Kisting, executive vice president of Cal Fed's retail bank. "These employees have well established relationships with their customers, and can ensure their complete satisfaction throughout the change of ownership and beyond."

Before joining Cal Fed, Kisting was a Norwest Group executive with responsibility for three community banking regions -- including Nevada. He has a thorough knowledge of the Nevada market, and understands the people-centered approach that customers and employees of these branches have grown accustomed to.

"My background should help smooth this transition for customers and employees," he said. "I think they'll see few differences between the two companies' styles. Our aim is to achieve a seamless changeover."

"It's disappointing to part with some of our great customers and team members," said Laura Schulte, president of Norwest Bank Nevada. "Unfortunately government regulations forced us to sell these branches. We apologize for any inconvenience this may have caused our customers or team members. However, Cal Fed has a growing presence in Nevada, and we are confident our clients will be well served by the experienced team they have built."

With $52 billion in assets, California Federal Bank is the second-largest savings and loan in the country. Cal Fed is an indirect subsidiary of Golden State Bancorp (NYSE:GSB). Based in San Francisco, Cal Fed has approximately 360 branches in California and Nevada, and originates mortgage loans in 44 states through a subsidiary, First Nationwide Mortgage Corporation.