Class Action Lawsuit Filed on Behalf of Purchasers of the 6.75% Convertible Subordinated Notes, 11.5% Senior Notes and Common Stock of Southern Pacific Funding, Inc. by Savett Frutkin Podell & Ryan, P.C.

PHILADELPHIA--(BUSINESS WIRE)--Oct. 26, 1998--Savett Frutkin Podell & Ryan, P.C. announces that a class action lawsuit was filed in the United States District Court for the District of Oregon on behalf of all purchasers of Southern Pacific Funding, Inc. ("Southern Pacific Funding" or the "Company") 6.75% Convertible Subordinated Notes ("6.75% Notes") (NYSE:SFC.D), 11.5% Senior Notes and common stock (SFC) from January 29, l998 through and including September 30, l998 (the "Class Period"), against Imperial Credit Industries, Inc.("ICII") and one of its directors and certain of Southern Pacific Funding, Inc.'s officers and directors, alleging violations of the Securities Exchange Act of l934.

The Complaint charges certain directors and officers of Southern Pacific as well as ICII and one of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of l934 as a result of their dissemination of numerous materially false and misleading announcements concerning the financial condition of Southern Pacific Funding.

Plaintiff alleges that in a succession of announcements and public filings during the Class Period, defendants reported "record" fourth quarter 1997, extremely positive first quarter 1998 and "record" second quarter 1998 Southern Pacific revenues and earnings, creating and sustaining the false impression, at all relevant times, that the Company was experiencing extraordinary profitability and that the same profitability and growth would be maintained and enhanced.

Plaintiff alleges such statements were materially false and misleading and on October 1, 1998, Southern Pacific Funding filed for protection under Chapter 11 of the United States Bankruptcy Code.

Plaintiff seeks to recover damages on behalf of all Class members and is represented by the law firm of Savett Frutkin Podell & Ryan, P.C., which has significant experience in litigating complex class actions including class actions on behalf of investors and shareholders.

If you purchased the 6.75% Notes, 11.5% Senior Notes or common stock of Southern Pacific Funding, Inc. (SFC) during the Class Period, you may move the court to serve as lead plaintiff to the class by December 8, 1998.

If you wish to discuss this action, or any have questions concerning this notice or your rights with respect to this matter, please contact Barbara A. Podell, Esquire at Savett Frutkin Podell & Ryan, P.C. by calling toll-free 800/993-3233, or via Internet electronic mail at [e-mail] or by writing Savett Frutkin Podell & Ryan, P.C. at 325 Chestnut Street, Suite 700, Philadelphia, PA 19106.