Class Action Complaint Against Life Financial Corporation, Certain of Its Officers and Directors, Keefe, Bruyette & Woods, and Deloitte & Touche LLP Alleging Violations of Federal Securities Law Filed by Rabin & Peckel LLP.

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Dec. 23, 1999

The following is an announcement from the law firm of Rabin & Peckel LLP:

A class action complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Life Financial Corporation ("Life Financial" of the "Company") (NASDAQ: LFCO) common stock during the period June 24, 1997 through March 3, 1999, inclusive (the "Class Period"), including those who acquired the common stock pursuant to the Company's Registration Statement and Prospectus declared effective by the SEC on June 24, 1997.

The Complaint alleges that defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning the Company's financial results during the Class Period. On March 3, 1999, the Company announced that it would have to restate its financial results for the fiscal years 1996 and 1997 and the first, second and third quarters of the fiscal year 1998, including those in the Registration Statement. The Company stated that it would have to restate net income, shareholders equity, and earnings per share for the afore mentioned time period and retroactively measure credit enhancement assets using the "cash-out" accounting method. The restatement was required because the financial statements improperly used the practice of measuring and accounting for all excess cash flows by using the "cash-in" accounting method as opposed to the "cash-out" method mandated pursuant to Generally Accepted Accounting Principles. The Complaint alleges that as a result of these false and misleading statements the price of Life common stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages.

Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.

If you purchased or otherwise acquired Life common stock during the Class Period described above, you may, no later than February 21, 2000, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Elana M.B. Bourkoff, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at [phone] or [phone], by facsimile at [phone], by e-mail at [e-mail], or at the website at www.rabinlaw.com .