First Chesapeake Announces Grant Thornton as New Auditors.

PHILADELPHIA--(BUSINESS WIRE)--June 17, 1999--

First Chesapeake Financial Corporation (OTC BB:FCFK) today announced that effective on June 8, 1999, it engaged the accounting firm of Grant Thornton LLP.

The new accountants have been engaged to audit and report on the financial statements of the Company for its fiscal year ended December 31, 1998 and subsequent periods. This action to replace the Company's auditors was approved by the Board of Directors of the Company.

First Chesapeake previously engaged BDO Seidman, LLP as its independent accountants. During the Company's 1996 and 1997 fiscal years and the subsequent interim periods preceding the dismissal, there were no disagreements with the former auditors on matters of accounting principles or practices, financial statement disclosure or auditing scope or procedure.

"BDO Seidman has worked well with the Company's former management in the past," stated Mark Glatz, Chief Financial Officer. "However, First Chesapeake has made the decision to enlist Grant Thornton as its new accounting firm in order to assist us as we rebuild the Company into a profitable financial services provider."

Mr. Glatz continued, "We have made significant progress in the past year, transforming First Chesapeake from a dormant shell to a company with a sound strategic goal of building a diversified mortgage banking operation through selective, well-structured acquisitions. Grant Thornton's depth and breadth of services will assist us in managing and reporting the financial aspects of our operations as we continue to build our business."

First Chesapeake Financial Corporation is engaged primarily in the residential and commercial mortgage banking business at both the wholesale and retail levels. The company is actively seeking to grow its mortgage banking operations internally and through selective, well-structured acquisitions. First Chesapeake intends to continue on its path of acquiring profitable regional retail loan originators that are below the "radar screen" of the major players and which complement First Chesapeake's diversified geographical, loan product and retail/wholesale composition.

This release contains forward-looking information including statements regarding the Company's business outlook or future performance, anticipated profitability, revenues, expenses or other financial items. Factors that could cause actual events to differ materially from these forward-looking statements include, but are not limited to, the following: overall economic and business conditions, trends for the continued growth of the mortgage and financial services industry, the realization of anticipated revenues, profitability and cost synergies, the demand for the Company's products and services, pricing ad other competitive factors in the industry and new government regulations and/or legislative initiatives. These and other risks are described in the Company's filings with the Securities and Exchange Commission, including the Company's Form S-1 registration statement, Annual Report on Form 10-KSB for the year ended December 31, 1997 and Quarterly Reports on Form 10-QSB through September 30, 1998.