FMAC Announces Sale of Loans.

LOS ANGELES--(BUSINESS WIRE)--March 1, 1999--Franchise Mortgage Acceptance Company (FMAC) (NASDAQ: FMAX) announced today that it signed an agreement to sell approximately $400 million of loans to an undisclosed buyer.

FMAC sells its restaurant franchise and energy industry loans primarily through securitization. "We had an opportunity to profitably sell loans this quarter to a whole loan buyer," said Kevin Burke, executive vice president in charge of Capital Markets for FMAC. "We will ultimately securitize this loan product in an arrangement with the purchaser with a split of profits, however, the whole loan sale was more cost-effective, and therefore more profitable for us." "We are pleased to have alternative sources of financing for our loan product" said Wayne Knyal, president and chief executive officer for FMAC. "This provides us with the opportunity to broaden our product line and maximize profitability."

FMAC, founded in 1991, is a specialty commercial finance company engaged in the business of originating and servicing loans to small businesses, with a primary focus on established national and regional franchise concepts and multi-family apartment operators. The Los Angeles-based company has provided more than $5 billion in financing and has enabled investor participation through 15 securitizations of pooled loans totaling more than $2.4 billion. The company's servicing portfolio is currently $5.4 billion. FMAC has regional offices in Atlanta, Dallas, Denver, Greenwich, Newport Beach and Morristown, N.J., with local offices in several other states across the country.

Certain statements contained herein are "forward-looking" statements within the meaning of applicable federal securities laws. These forward-looking statements may be identified by reference to a future period(s) or by the use of forward-looking terminology, such as "may," "will," "intend," "should," "expect," "anticipate," "estimate," "continue" or the negatives thereof or other comparable terminology. FMAC's actual results could differ materially from those anticipated in such forward-looking statements due to a variety of factors, including, but not limited to, changes in national, regional or local economic environments, competitive products and pricing, government fiscal and monetary policies, changes in prevailing interest rates, other factors generally understood to affect franchise, mortgage and leasing markets and security investments, as well as the other risks detailed in the Company's Form 10-K for the period ended December 31, 1997 and other filings with the Securities and Exchange Commission.

Editor's Note: For more financial information on FMAC, readers should contact Raedelle Walker, CFO, at 1888 Century Park East, 3rd Floor, Los Angeles, CA 90067, phone: [phone], or access FMAC's Website at http://www.fmax.com.