Crown NorthCorp Redeems Preferred.

Business Editors

COLUMBUS, Ohio--(BUSINESS WIRE)--Dec. 23, 1999

CROWN NORTHCORP (OTCBB:ASET)--Crown NorthCorp Inc., a rated asset management and servicing firm, announces that it has completed a series of measures to reposition the company's businesses and restructure its capitalization.

These measures, which include the sale of certain assets and the redemption of three classes of preferred stock, have been taken to preserve common shareholder value and the development of the company's core asset management and servicing businesses.

Crown has sold its interests in an undeveloped parcel of land in Northern Virginia. Additionally, the company has sold a portfolio of Fannie Mae DUS loans to AMI Capital Inc. Using the proceeds from asset sales throughout 1999 as well as third-party financing, Crown has redeemed preferred stock held by Harbert Equity Fund I, L.L.C., ContiWest Corporation and National City Corporation. Raymond J. Harbert and Michael D. Luce, who served on Crown's board as representatives of the Harbert organization, have resigned as directors. The company has also accepted the resignation of Harold E. Cooke as president, chief operating officer and a director of the company.

Ronald E. Roark, chairman and chief executive officer of Crown, said, "The quality of the financial services Crown provides has always been the fundamental element of the company's value. The actions we are announcing today demonstrate our renewed commitment to our core asset management and servicing operations."

With the consummation of these transactions, Crown has concluded its engagement of Legg Mason Wood Walker Inc., which provided strategic and financial advice to the company.

Crown provides comprehensive financial services to commercial real estate markets through its headquarters in Columbus and offices in Atlanta and Dallas.

This press release contains forward-looking statements including, without limitation, statements regarding the outlook for future operations and Crown's efforts to develop and expand business lines or to implement other business plans. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described herein. These risks and uncertainties include, but are not limited to, developments in the capital markets, economic conditions, increased competition in the markets Crown serves and the financial capabilities of the company. We refer you to the documents Crown files with the Securities and Exchange Commission from time to time which contain additional, important factors that could cause its results to differ from its current expectations and the forward-looking statements contained in this press release.

http://www.crownnorthcorp.com