Central Financial Acceptance Announces Plans to Complete Plan of Complete Dissolution, Liquidation & Distribution on Feb. 28, 2001 and Preliminary Unaudited Financial Results for 2000.

Business Editors

COMMERCE, Calif.--(BUSINESS WIRE)--Feb. 26, 2001

Central Financial Acceptance Corp. (OTC BB:CFAC) today announced that it anticipates that on Feb. 28, 2001 the company will complete its Plan of Complete Dissolution, Liquidation and Distribution, under which it will distribute to its shareholders all of the outstanding common stock of its two subsidiaries, Hispanic Express Inc. ("HEX") and Banner Central Finance Co. ("Banner").

Both HEX and Banner have been listed on OTC Bulletin Board and will trade under the respective symbols HEXI and BCFC.

CFAC today also announced preliminary unaudited financial results for the year ended Dec. 31, 2000 for HEX and Banner. For the 12 months ended Dec. 31, 2000, HEX had revenues of $37,735,000 and a net loss of $3,216,000, compared to revenues of $39,902,000 and net income of $2,639,000 for the 12 months ended Dec. 31, 1999.

For the three months ended Dec. 31, 2000, HEX had revenues of $9,062,000 and a net loss of $2,529,000 compared to revenues of $10,398,000 and net loss of $217,000 in the three months ended Dec. 31, 1999.

At Dec. 31, 2000, HEX had shareholders' equity of $40,846,000 and 7,166,000 common shares outstanding. For the 12 months ended Dec. 31, 2000, Banner had revenues of $9,174,000 and a net income of $378,000 compared to revenues of $11,424,000 and net income of $1,195,000 for the 12 months ended Dec. 31, 1999.

For the three months ended Dec. 31, 2000, Banner had revenues of $2,279,000 and a net loss of $87,000 compared to revenues of $2,654,000 and net income of $41,000 in the three months ended Dec. 31, 1999. At Dec. 31, 2000, Banner had shareholders' equity of $29,541,000 and 7,166,000 common shares outstanding.

In commenting on the performance of HEX, Gary Cypres, chairman of the board and president, stated that "the fourth-quarter operating results reflected write-offs of assets in connection with its decision to close certain check-cashing and loan-origination facilities, and costs associated with the adoption of the Plan of Complete Dissolution, Liquidation and Distribution of CFAC, and the implementation of a new computer system."

Cypres also stated that, "HEX increased its provision for credit losses in the fourth quarter, reflecting higher delinquencies which began to increase at the time of the Los Angeles bus strike and which have continued through year end. In response to increased delinquencies, HEX significantly tightened its credit guidelines in the fourth quarter, resulting in less loans being made in the fourth quarter of 2000 compared to the fourth quarter of 1999."

Cypres also added, "HEX's travel business in the fourth quarter continued to be adversely affected by reduced travel commissions paid by certain airlines on travel fares to Mexico."

In commenting on the performance of Banner, Cypres stated that "fourth-quarter operating results reflect higher provisions for credit losses as a result of increased delinquencies and decreased interest income as a result of the continued decline in Banner's receivables portfolios."

Central Financial Acceptance is a specialized consumer finance and multi-unit travel service company that primarily serves the travel needs of the growing low-income Hispanic population in California.

Certain statements in this news release constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995 which involve risks and uncertainties. The company's actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include but are not limited to economic conditions, credit quality, fluctuations in interest rates, the company's relationship with its airlines, capital availability, technology, competition in the geographic and business areas in which the company conducts its operations, and other factors discussed in the company's annual report on Form 10-K and the company's Information Statement on Form 14C.