Cohen, Milstein, Hausfeld & Toll, P.L.L.C., Announces Filing of Expanded Class Action Suit Against Southern Pacific Funding and its Controlling Shareholder Imperial Credit Industries.

SEATTLE--(BUSINESS WIRE)--Oct. 26, 1998--The following statement has been issued by Cohen, Milstein, Hausfeld & Toll, P.L.L.C.:

An expanded class action has been commenced in the United States District Court for the District of Oregon on behalf of all persons who purchased the securities of Southern Pacific Funding Corp. (OTC BB:SFCFQ) (NYSE:SFC) ("Southern Pacific" or the "Company") from January 29, 1998 through September 30, 1998, inclusive (the "Class Period"). The securities include all Southern Pacific securities, including common stock; 6.75% convertible notes; and 11.5% senior notes. Southern Pacific is based in Lake Oswego, Oregon, a suburb of Portland, Oregon.

The complaint charges certain officers and directors of Southern Pacific and its controlling shareholder, Imperial Credit Industries, Inc., with violations of the Securities Exchange Act of 1934. It has been expanded from the original lawsuit to cover the period through September 30, 1998, and to cover all Southern Pacific securities.

Southern Pacific is a specialty finance company engaged in the business of originating, purchasing and selling high-yielding, non-conforming mortgage loans secured primarily on lending to individuals based on the equity value in their homes. On October 1, 1998, Southern Pacific filed for protection under Chapter 11 of the United States Bankruptcy Code.

The complaint alleges that defendants issued a series of false and misleading statements about Southern Pacific's earnings, profitability and business condition and issued financial statements during the Class Period that were materially false and misleading and violated Generally Accepted Accounting Principles, thereby misleading investors regarding Southern Pacific's true financial condition and then-current financial performance. As a result, the prices of Southern Pacific's securities were artificially inflated during the Class Period, causing its stock price to jump to as high as $18 per share.

The lawsuit seeks to recover damages on behalf of all purchasers of Southern Pacific securities during the Class Period and is brought by the Seattle law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C.

If you are a member of the Class described above, you may, no later than December 8, 1998, move the Court to serve as lead plaintiff of the Class, if you so choose. In order 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 case or your rights or interests, please contact Steven J. Toll or Matthew J. Ide at Cohen, Milstein, Hausfeld & Toll, P.L.L.C., 999 Third Avenue, Suite 3600, Seattle, Washington 98104. Telephone: [phone]. E-mail: [e-mail] or [e-mail].

Further information about Cohen, Milstein, Hausfeld & Toll, P.L.L.C. is available at http://www.cmht.com.