Continental Federal Credit Union Applauds National Credit Union Association's Decisive Action in the Wings Financial Hostile Takeover Attempt.

EL SEGUNDO, Calif. -- Continental Federal Credit Union (Continental FCU) today applauded the National Credit Union Administration's (NCUA) quick action in ending the Wings Financial Credit Union (Wings Financial) hostile takeover attempt.

"We appreciate the careful review and timely, decisive action our regulators have independently taken on this issue that is so important to both our credit union and our industry," said Tom Glatt, president and CEO of Continental FCU. "In affirming that a per capita payment offer is illegal, the NCUA has put a stop to this unprecedented, misleading and unlawful campaign that showed such callous disregard not only for Continental FCU, our Board of Directors and our members, but also for our entire credit union system, its principles and codes of conduct. Through its action, the NCUA has taken a critical step in preserving our cooperative system, and ensuring our credit union legacy of mutual assistance, cooperation and support continues."

In a statement released today, the NCUA commented, "NCUA has reviewed the offer by Wings Federal Credit Union to pay members of Continental Federal Credit Union $200 apiece if Continental merges with Wings, and has informed Wings that the payment is impermissible under the provisions of the Federal Credit Union Act." The statement also noted, "NCUA has informed Wings that the FCU Act does not allow per capita dividend payments, and that no other legal authority exists for a Federal credit union to make this kind of payment. Additionally, the unilateral promise of a dividend by the continuing credit union in a proposed merger, without the approval of the merging credit union, is not permitted. Accordingly, NCUA has requested that Wings FCU discontinue the activity in question."

Glatt further commented, "As our legal counsel Styskal, Wiese & Melchione LLP communicated to the Wings Financial Board of Directors on our behalf last week in demanding a 'cease and desist' of its illegal attempt to force a merger upon our members, this campaign has violated the Federal Credit Union Act as well as NCUA rules and regulations. We are very pleased our regulator has vindicated our position."

He continued, "In its action, the NCUA has removed a direct threat to the member-owners of Continental FCU, who very much opposed this blatant attempt to steal their credit union. Thanks to the NCUA's independent involvement and oversight, we can now put this issue behind us and return our full attention where it should be: Serving the needs of Continental FCU member-owners by providing the best value possible."

Wings Financial - formerly Northwest Airlines FCU - submitted its fourth unsolicited offer to Continental FCU on March 9th to merge the two credit unions under Wings Financial's management. Simultaneously, Wings Financial wasted its members' monies in launching an unprecedented, misleading and illegal campaign to force a takeover, including a promise to pay $200 to each Continental FCU member if the deal was approved in a self-serving attempt to lobby Continental FCU members to support its offer.

On March 20th, Continental FCU's Board of Directors voted unanimously to reject the offer because it was not in the best interests of members, did not bring any compelling value to membership and was an obvious attempt by Wings Financial to grow their own business at the expense of Continental FCU members. Despite this unanimous decision by Continental FCU's Board, Wings Financial chose to ignore its authority and continue its deceptive and unlawful campaign.

About Continental Federal Credit Union

Chartered in 1952 by a group of Continental Airlines employees, Continental FCU has been a place for members to obtain low-cost loans and build their savings. Since then, it has grown into a full-service credit union, offering members a wide array of products and services, including no-fee ATMs, 24-hour telephonic access, competitive mortgage, home equity, auto and consumer loans, Visa credit and check cards, and a broad spectrum of complementary services that members would expect from their primary financial institution. Membership in Continental FCU is available for employees of its primary sponsoring airlines, Continental Airlines and US Airways, as well as employees of all other entities engaged in the air transportation industry who work in the United States, members of their immediate families or households, and organizations of such persons.