FMAC Implements State-Of-The-Art System To Speed Loan Originations.

LOS ANGELES--(BUSINESS WIRE)--Aug. 3, 1999--

LOIS' to Accelerate Processing, Enhance Service

With an eye toward increasing the speed and efficiency of its loan origination process, FMAC (NASDAQ: FMAX) has custom built a client server/based computer software system that is reducing turnaround time for originating franchise loans. With this implementation, FMAC expects to redefine customer service for specialized lending in the new millennium.

The FMAC Loan Origination and Information System or LOIS automates the loan process from inception to funding. The system has a three-fold purpose: to create efficiency in all FMAC loan origination processes; build a central repository of all borrower and loan origination information; and facilitate the sharing and reporting of information throughout the company. LOIS' Release 1.0 was designed, built and installed on schedule and under budget in eight months.

"This system will shorten the loan originating and closing process and substantially impact the processing of new loans for repeat borrowers," said Mohan Chhabra, director of information technology for FMAC and the creator of LOIS. Chhabra said LOIS grew out of a void in available software systems that can meet the specific needs of FMAC in its niche of specialized commercial lending.

"This system will create significant process efficiencies and will provide a key information data base to users and management. LOIS will be a tremendous resource of data while reducing keystrokes and ultimately saving time and providing greater service to our customers," Chhabra said.

FMAC President and CEO Wayne L. "Buz" Knyal said the development and implementation of LOIS will optimize customer relations and services, and enhance company operations from management through every department and division.

FMAC employees trained on the system, from vice presidents with laptops in the field to loan closers, will have access to LOIS. Knyal called LOIS "an internal tool set" that is invisible to customers yet acts as a speedy advocate in moving loans forward.

"FMAC has always been an innovative, cutting edge company, and with the addition of LOIS to our information technology infrastructure we will continue to be an industry leader in franchise lending," said Knyal. "This system has all the bells and whistles, and can accommodate very fast-moving transactions. We'll be able to expand it and adjust it internally to meet our future needs."

Dan Masterson, senior closer in the FMAC Energy Finance Group, said LOIS is enjoying a successful launch because it is user friendly - a key goal for those who developed it.

"It streamlines the process greatly and is versatile in its usage company-wide. It does reviews, checklists, order forms and management can pull up reports to tailor them. It works for everyone," Masterson said. In addition, noted Janet Rogers, vice president, regional credit manager, "Some of our more astute borrowers are pleased that we have installed it, particularly those who have done transactions with FMAC before."

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 $6 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 $5.9 billion. FMAC has regional offices in Atlanta, Dallas, Denver, Greenwich, Irvine, Calif., 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, 1998 and other filings with the Securities and Exchange Commission.