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SOLAR FINANCIAL OBTAINS FINANCING

 MIAMI, July 15 /PRNewswire/ -- Solar Financial Services, Inc. (NASDAQ: SOFI) ("Solar") announces today it has received $5 million from National Heritage Life Insurance Company in exchange for a promissory note bearing interest at 7 percent per annum (the "note"). The note is mandatorily exchangeable into 30,000 shares of Series A Preferred Stock and 20,000 shares of Series B Preferred Stock subject to the approval of Solar's shareholders authorizing the issuance of Preferred Stock. Up to $3 million of the principal amount of the note as well as the Series A Preferred Stock is convertible into shares of common stock of Solar at $6.00 per share of common stock. Unless previously redeemed by Solar, the shares of Series B Preferred Stock are exchangeable on a share-for- share basis into shares of Series A Preferred Stock, which shares are convertible into shares of common stock of Solar at $6.00 per share of common stock.
 In connection with the delivery of the note, Solar refinanced its obligations owing to Security Pacific Business Credit Inc. ("Security Pacific"), Solar's primary lender, such that solar executed two separate promissory notes in favor of Security Pacific, one in the principal amount of $5.5 million (the "5.5 million note") and the other in the principal amount of $1,396,633.71 (the "1.3 million note"). The 1.3 million note was assigned by Security Pacific to a firm unaffiliated with either Security Pacific or Solar. Both the 1.3 million note and 5.5 million note bear interest at 3 percent over the prime rate as in effect at Bank of America (6 percent at July 15, 1993) and is payable monthly until July 15, 1995. The entire principal balance of the 1.3 million note and the 5.5 million note is due and payable on July 15, 1995.
 "These transactions are very beneficial to us. We welcome National Heritage Life Insurance Company as part of the Solar Financial family," said David L. Pavsner, president and chief executive officer of Solar.
 Solar is engaged in the sales and financing of used automobiles, vans and light trucks, operating auto depots in Dade and Broward County, Florida.
 A copy of Solar's Current Report on Form 8-K filed with the Securities and Exchange Commission regarding this transaction is incorporated by reference hereby.
 -0- 7/15/93
 /CONTACT: David L. Pavsner or Laurance B. Hankin, chief financial officer of Solar Financial Services, Inc., 305-835-1160/
 (SOFI)


CO: Solar Financial Services, Inc. ST: Florida IN: FIN AUT SU:

AW-SB -- FL011 -- 1976 07/15/93 12:46 EDT
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Publication:PR Newswire
Date:Jul 15, 1993
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