FIRSTPLUS Financial acquires Southern Management.

DALLAS, TX--(BUSINESS WIRE)--September 3, 1997--FIRSTPLUS Financial Group, Inc. (Nasdaq: FPFG) today announced that it has acquired Southern Management Corporation (SMC). Under the terms of the agreement, FIRSTPLUS will issue common stock in exchange for all of the outstanding shares of SMC. The merger will be accounted for as a pooling of interests.

SMC, founded in 1981, is a Greenville, South Carolina based originator of small consumer finance loans with 88 branch locations in 4 states, including 33 which are located in Texas. As of June 30, 1997, SMC owned approximately 85,000 consumer finance accounts, with an average balance of approximately $350. All SMC loans are serviced in the branches. As a result of the merger, FIRSTPLUS, through its FIRSTPLUS Consumer Finance subsidiary, now owns 118 consumer finance branches, with licensed operations in 12 states.

Daniel T. Phillips, FIRSTPLUS' Chief Executive Officer, commented, "This merger is another important step in our becoming a diversified, marketing oriented, consumer finance company. The synergies SMC and FIRSTPLUS bring to each other, including the use of our retail telemarketing groups to generate small loan referrals, is significant. We are proud to have SMC managers and employees as our partners."

G. Elton Todd, Chairman and CEO of Southern Management Corporation, commented, "Our combined business will afford our customers greater access to more loan products as well as provide SMC with lower cost capital. Additionally, all of our branches are preparing to refer B&C home equity loans to FIRSTPLUS, but our Texas branches expect to be especially active in this endeavor after the Texas homestead laws are modified."

Chuck Owens, President of FIRSTPLUS Consumer Finance, noted "Elton Todd and his team have lengthy experience in the consumer finance market. The current Southern Management structure, with all employees, will remain in place. FIRSTPLUS will quickly expand Southern Management's responsibilities to include offering B&C loans as well as growing the traditional Southern Management consumer loan business."

The above statements in this press release contain certain forward-looking statements that involve a number of risks and uncertainties. Reference is made to the Form 8-K, filed by the Company with the Securities and Exchange Commission on December 19, 1996, for a list of, and discussion with respect to, certain factors that could cause actual results to differ materially from the forward-looking statements contained herein.

FIRSTPLUS Financial Group, is a specialized consumer finance company that, through its subsidiaries, originates, purchases, services and securitizes consumer finance receivables, primarily home improvement loans, all secured by liens on the borrower's home. FIRSTPLUS, headquartered in Dallas, has regional offices in Denver, Colorado; Holly Springs, Mississippi, Columbus, Ohio, Columbia, South Carolina, Laguna Hills, California and a network of origination branches nationwide.

CONTACT: Daniel T. Phillips, Chairman

Eric C. Green, President & CFO 

Ron Conner, VP/Investor Relations

FIRSTPLUS Financial Group, Inc.

214/599-6300

or

Michelle Katz, Geoffrey Buscher,

Jason Langer

Press: Brian Maddox, Estelle Bieber

Morgen-Walke Associates

212/850-5600