First Sierra Moves to Strengthen Technology Market Presence With Oliver-Allen Acquisition.

HOUSTON--(BUSINESS WIRE)--June 10, 1998--First Sierra Financial, Inc. (NASDAQ:FSFH) today announced the acquisition of Oliver- Allen Corporation, a private leasing company that specializes in leasing and remarketing Information Technology ("IT") equipment. The acquisition advances First Sierra's ongoing strategy for strengthening its presence in the rapidly growing IT leasing market and provides a platform for integrating all of First Sierra's IT finance activities. Oliver-Allen is First Sierra's seventeenth acquisition since July, 1996.

The total deal value is approximately $91.2 million and will be paid 100% with First Sierra common stock. At December 31, 1997, Oliver-Allen had total assets of approximately $179 million. First Sierra will issue the equivalent of approximately 3.8 million shares in stock and options. It is expected that the transaction will be accounted for as a pooling of interests. The acquisition is expected to be completed in the 1998 third quarter, subject to approval by First Sierra's shareholders as well as other customary closing conditions. The company expects the transaction to be non-dilutive to earnings in 1998 and accretive to earnings in 1999.

Oliver-Allen, established in 1973, is headquartered in Larkspur, CA and has offices in Laguna Beach and Minnetonka, MN. Its expertise in diverse IT assets, including mid-range, network, and open systems as well as check processing equipment, complements First Sierra's focus on the technology market.

Joining First Sierra's senior management team, Oliver- Allen's executives John Allen and John Howe will draw on their technological knowledge and IT market expertise in their new roles as, respectively, CEO and Executive Vice President of First Sierra's IT Division.

"We believe that technology will continue to be among the fastest-growing industries in the United States. First Sierra is committed to being a strong, highly visible, and highly successful competitor in this key arena. This acquisition represents the Company's third move in recent months to act on that commitment and make that goal a reality," First Sierra CEO Tom Depping said. "In March, we acquired Integrated Lease Management, Inc., the Silicon Valley-based industry leader in captive finance services to the technology market. The following month, we acquired Nexsoft, Inc, a Denver-based software developer that develops and administers software for the equipment leasing industry. That acquisition enabled First Sierra to bundle technology with other services to broker, vendor, and private label clients. The Oliver-Allen acquisition provides First Sierra with a leasing and remarketing platform supported by 25 years' experience in the IT market. These three acquisitions will provide FSFH with significant growth opportunities in the IT sector."

John Allen, CEO of Oliver-Allen, said, "With First Sierra's impressive entry into equipment leasing, its record of successful expansion and acquisitions, and its commitment to technological superiority, we recognized this combination as an exciting opportunity. We're confident that by leveraging our merged assets and resources, we can continue to work toward increased prominence and profitability in this industry."

The Company also announced today that Michael Sabel has joined First Sierra as Executive Vice President of Mergers & Acquisitions and President of First Sierra International. Mr. Sabel was most recently Managing Director and head of Lease Investment Banking at Friedman, Billings, Ramsey and Co., Inc.

First Sierra Financial will host a conference call at 11:00 A.M. EST today, June 10, 1998, to discuss the acquisition. The number for the conference call is [phone].

This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect the management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Readers should also carefully review the risk factors described in documents the Company files from time to time with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 1997.

First Sierra Financial, Inc., headquartered in Houston, Texas, is a specialty finance company that acquires, originates, sells and services equipment leases on a wide range of computers and peripherals, software, telecommunications, and diagnostic equipment as well as other specialized equipment for the health care, automotive, food and hospitality industries. The Company customizes lease financing products and offers servicing and technological support via on-line connections to its state- of-the-art computer system. First Sierra operates in ten states and has 19 offices.

CONTACT: First Sierra Financial, Inc.

Thomas Depping, CEO

Sandy Ho, CFO 

713/221-8822

or

Morgen-Walke Associates, Inc.

Michele Katz/Randy Hecht/Elric Martinez

Press: Brian Maddox/Estelle Bieber

212/850-5600