FMAC Hits Billion Dollar Mark in Loans.

LOS ANGELES--(BUSINESS WIRE)--July 20, 1998--

Mid-Year Loan Production Already Surpasses Total for 1997

FMAC (NASDAQ: FMAX) just surpassed the $1 billion mark in calendar year 1998 loan production. Through today, FMAC has generated an increase of more than 25 percent from 1997's total loan production of $801.3 million.

"1998 is turning out to be a banner year for FMAC and all of its constituencies," said Wayne L. Knyal, president and chief executive officer of FMAC. "From shareholders to bondholders to borrowers, we're all seeing numbers that are very impressive. The economy and the industries we serve are all doing well. And that translates into borrowers' need for more capital to grow, renovate and acquire."

FMAC has already achieved several company volume records this year for its record loan origination and $500 million of completed securitizations. In addition, FMAC is the 14th largest commercial mortgage servicer in the country according to Real Estate Finance Today. Thecornerstone of FMAC's commercial mortgage financing strategy is providing responsive, innovative solutions and extensive industry knowledge to serve its clients and partners.

"I want to take this opportunity to thank our dedicated employees and partners for delivering quality service that is unsurpassed in the industry," said Knyal. "1998 is shaping up as a stellar year for FMAC. Because we serve a diversified range of industries from franchise restaurants to cemetery owners and petroleum retailers, with loan proceeds used for acquisitions, expansions, renovations and equipment purchases, this ensures FMAC a stable stream of future revenues."

FMAC, (Franchise Mortgage Acceptance Company), founded in 1991, is a specialty commercial finance company engaged in the business of originating and servicing loans and equipment leases 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 customer financing and has enabled investor participation through 12 securitizations of pooled loans totaling more than $1.7 billion. The company's overall servicing portfolio is $4.5 billion, reflecting the purchase of Bankers Mutual. The FMAC Equipment Finance Group is based in Greenwich, CT. FMAC has other major offices in Atlanta, Dallas, Newport Beach and Denver, with regional offices in several other states across the country.

Statements contained herein, other than historical data, may be forward-looking and are subject to risks and uncertainties including, but not limited to, the Company's ability to achieve its revenue and marketing plans, while effectively managing expenses, as well as those risks set forth in the Company's Form 10-K for the period ended December 31, 1997 and other SEC filings.

   CONTACT: Caitlin McConoughey/Jason Kannon
             Austin Lawrence Group
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