Central Financial Acceptance Corp. Reports Earnings Results for the Fourth Quarter of 1997.

COMMERCE, Calif.--(BUSINESS WIRE)--Feb. 25, 1998--Central Financial Acceptance Corp. (NASDAQ:CFAC) Wednesday announced that for the fourth quarter of 1997 the company had incurred a net loss of $857,000, or 12 cents per common share, compared with net income of $1,857,000, or 26 cents per common share, in the comparable quarter of 1996.

For the 12 months ended Dec. 31, 1997, net income was $4,390,000, or 60 cents per common share, compared with net income of $5,879,000, or 95 cents per common share, for the 12 months ended Dec. 31, 1996. Total revenues for the fourth quarter and 12 months ended Dec. 31, 1997, were $12,795,000 and $52,040,000, respectively, compared with the $11,722,000 and $36,427,000 for the comparable periods of 1996.

As previously announced, operating results for the fourth quarter of 1997 reflect a provision for credit losses of approximately $1.8 million in connection with the company's decision to phase out of its credit relationship with 100 small independent retailers and approximately $750,000 of expenses incurred in connection with the company's introduction of its Efectiva card.

Fourth-quarter results also reflect approximately $400,000 of charges incurred in connection with the company's Preferred Trust offering, which has been withdrawn, $300,000 of expense related to the modification of the company's programming for the Year 2000 change and $200,000 of expenses incurred in connection with the company's start-up of its income-tax preparation service.

In commenting on the operating results, Gary Cypres, chairman and president, stated, "net income for the fourth quarter and full year of 1997 was adversely impacted by rising credit losses," and that he expects the company to face a challenging credit climate in 1998.

Cypres added: "The company's total net finance receivables, before allowance for credit losses, was $111,032,000 at Dec. 31, 1997, compared with $127,177,000 at the end of 1996." This decline was attributable to a $19,449,000 decrease in the company's consumer products portfolio, which amounted to $34,997,000 at Dec. 31, 1997.

Cypres further added that he "expects the company's consumer products portfolio to continue to decline in 1998 as the company will continue to focus its energies on developing and marketing those financial products and services which offer the greatest potential for growth and profitability."

Cypres also stated that he "anticipates that the company will again spend considerable resources in marketing its Efectiva card in 1998." Finally, Cypres commented that "the company's strong strategic position and distribution capability within the Hispanic community in California has created a number of potential joint venture opportunities, which the company will pursue in 1998."

Central Financial Acceptance is a specialized consumer finance company that primarily serves the financing needs of the growing low- income Hispanic population in California. -0-

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, 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 10-K. -0-

                            BALANCE SHEETS
         CENTRAL FINANCIAL ACCEPTANCE CORP. AND SUBSIDIARIES
                             CONSOLIDATED
                             (Unaudited)

                                                  Dec. 31,
ASSETS                                       1997          1996

 Cash                                  $  4,794,000   $  5,848,000
 Finance receivables, net               103,197,000    120,391,000
 Prepaid expenses and other
  current assets                          3,795,000      3,962,000
 Note receivable from affiliate           4,992,000        787,000
 Deferred/receivable income taxes         4,631,000      3,536,000
 Property and equipment, net              5,880,000      3,425,000
 Intangible assets, net                   8,559,000      8,725,000
 TOTAL                                 $135,848,000   $146,674,000

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
 Notes payable                         $ 62,000,000   $ 74,024,000
 Accrued expenses and other current
  liabilities                             7,255,000      9,495,000
 Income taxes payable                             0        952,000
 Long-term debt                             850,000        850,000
  Total liabilities                      70,105,000     85,321,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
 Preferred stock, $.01 par value,
  5 million shares authorized; no
  shares outstanding                              0              0
 Common stock, $.01 par value,
  20 million shares authorized;
  7,277,000 shares issued and
  outstanding                                73,000         73,000
 Paid-in capital                         47,903,000     47,903,000
 Retained earnings                       17,767,000     13,377,000
  Total stockholders' equity             65,743,000     61,353,000
 TOTAL                                 $135,848,000   $146,674,000


                  CONSOLIDATED STATEMENTS OF INCOME
                          (Unaudited)

                           Three Months Ended    Twelve Months Ended
                                 Dec. 31,              Dec. 31,
                            1997        1996       1997        1996
REVENUES:
Interest income
 Consumer product
  portfolio            $ 2,206,000 $ 3,323,000 $10,822,000 $12,850,000
 Small loan portfolio    3,320,000   2,922,000  13,056,000   9,686,000
 Automobile finance
  portfolio                276,000     485,000   1,434,000   1,548,000
 Other                   1,139,000     832,000   5,001,000   1,691,000
  Total interest income  6,941,000   7,562,000  30,313,000  25,775,000

 Travel services, net    2,474,000   1,037,000   8,716,000   2,449,000
 Transaction fees from
  affiliate                284,000     279,000   1,127,000     965,000
 Other income            3,096,000   2,844,000  11,884,000   7,238,000
  Total revenues        12,795,000  11,722,000  52,040,000  36,427,000
COSTS AND EXPENSES:
 Operating expenses      8,633,000   4,776,000  27,217,000  12,676,000
 Provision for credit
  losses                 4,401,000   2,637,000  12,296,000   9,105,000
 Interest expense        1,204,000   1,214,000   5,314,000   4,697,000

Income (loss) before
 tax and discontinued
  operations            (1,443,000)  3,095,000   7,213,000   9,949,000

Income tax expense
 (benefit)                (586,000)  1,238,000   2,823,000   3,979,000

Income (loss) from
 continuing operations    (857,000)  1,857,000   4,390,000   5,970,000

Discontinued operations
 net (loss)                      0           0           0     (91,000)

Net income (loss)        $(857,000) $1,857,000  $4,390,000  $5,879,000

Per-share data:
 Basic earnings (loss)
  per share from
  continuing
  operations             (12 cents)   26 cents    60 cents    96 cents
 Loss per share
  discontinued
  operations                    --          --          --     (1 cent)
 Net income (loss)
  per share              (12 cents)   26 cents    60 cents    95 cents
 Weighted average
  common shares
  outstanding            7,277,000   7,277,000   7,277,000   6,213,500
 Supplementary net
  income per share              --    26 cents          --    90 cents
 Supplementary weighted
  average number of
  common shares
  outstanding                   --   7,277,000          --   7,277,000

CONTACT: Central Financial Acceptance Corp., Commerce

Gary Cypres or Carol Covert, 213/720-8608