ContiFinancial Participates in $1.1 Billion Commercial Mortgage-backed Securities Transaction.

NEW YORK--(BUSINESS WIRE)--Sept. 15, 1998--ContiFinancial Corporation (NYSE:CFN), through its subsidiary, ContiTrade Services L.L.C. ("ContiTrade"), has contributed approximately $633 million of commercial mortgage loans to an approximately $1.1 billion commercial mortgage-backed securitization, which closed on August 27, 1998. The securitization combined collateral provided by ContiTrade, Morgan Stanley Mortgage Capital Inc. and Red Mountain Funding, L.L.C. The approximately $633 million of collateral contributed by ContiTrade was originated under its ContiMAPO commercial real estate mortgage origination program. Additionally, Red Mountain Funding, a 48% owned affiliate of ContiTrade, contributed approximately $176 million of collateral to the transaction.

This issue is the second commercial mortgage securitization in which ContiTrade has participated during 1998 and its seventh in the past two years. In total, ContiTrade has contributed approximately $2.5 billion of commercial loans to these securitizations.

The Morgan Stanley Capital 1998-CF1 Certificates were issued by a trust established by Morgan Stanley Capital I, Inc. and include seven publicly-offered classes: -0-

         Approximate     Pass-
            Amount      Through    Wtd.      Moody's/S&P
Class   ($ Millions)     Rate    Avg. Life    Ratings         Type

A-1     $   239.0       6.33%     5.4 yrs.    Aaa/AAA         Fixed
A-2         359.8       6.59%     9.6         Aaa/AAA         Fixed
A-MF        197.8       6.57%     9.3         Aaa/AAA         Fixed
B            56.7       6.69%     9.8         Aa2/AA          Fixed
C            62.4       6.84%     9.8         A2/A            Fixed
D            62.4       7.26%    10.8         Baa2/BBB        Fixed
E            19.8       7.40%    13.8         Baa3/BBB-       Fixed

The offering was underwritten by Morgan Stanley Dean Witter, and Deutsche Bank Securities as co-lead managers. ContiFinancial Services Corporation and SouthTrust Securities, Inc. acted as selling agents for certain of the securities classes.

ContiFinancial is a diversified financial services company, with headquarters in New York City and over 3,000 employees nationwide. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer and servicer of home equity loans made to borrowers whose needs may not be met by traditional financial institutions. In addition, through ContiTrade Services L.L.C. and its ContiMAP(R) conduit, the Company finances a wide range of commercial real estate. Through ContiTrade Services L.L.C., the Company also provides financing and securitization services and, through ContiFinancial Services Corporation, bond placement services, to subsidiaries and other originators of a broad range of loans, leases and receivables, including loans for a variety of commercial real estate property types; home equity loans; home improvement loans; prime, non-prime and sub-prime auto loans; equipment leases; charged-off consumer debt; franchisee loans and time-share loans.

This announcement is not an offer to sell or a solicitation of an offer to buy any of these securities. The offering is made only by the Prospectus Supplement and the related Prospectus, copies of which may be obtained from the underwriters.

CONTACT: ContiFinancial Corporation

Jerome M. Perelson

Senior Vice President

212/207-5402

or

Edelman Financial

Allison H. Wey

Senior Vice President

[phone]