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SPEAR FINANCIAL REPORTS FOURTH QUARTER AND 1992 FINANCIAL RESULTS

 SAN DIEGO, Calif., March 31 /PRNewswire/ -- Spear Financial Services Inc. (NASDAQ: SFNS) today announced consolidated financial results for the fourth quarter and fiscal year ended Dec. 31, 1992. The results include a charge for discontinued operations. As announced in the fourth quarter of 1992, the company is in the process of divesting its securities operations, which includes Spear Rees & Co., a securities brokerage firm, and TCW Inc., a Pacific Stock Exchange specialist operation. James Mitchell & Co. (JMC), which is a leading marketer of annuities and other insurance products and mutual funds to customers of financial institutions, will be the sole remaining subsidiary.
 On a consolidated basis, the company reported a net loss for the recent fourth quarter of $(1,426,902), or (19 cents) per share, reflecting a loss of $(2,441,359), or (33 cents) per share, for discontinued operations. For the full year 1992, the company reported net income of $1,695,463, or 23 cents per share, despite a loss of $(2,912,225), or (38 cents) per share, for the year on discontinued operations. This compares with net income of $1,746,094, or 24 cents per share, in 1991.
 "The loss for discontinued operations includes a one-time charge, reflecting the estimated loss on disposal of the securities businesses. The estimated sales price of these businesses was determined in conjunction with our investment bankers and is based on preliminary offers received to date from several bidders," said James K. Mitchell, chairman and chief executive officer. "We are currently in active negotiations with several parties and anticipate the transactions will be finalized in the second quarter."
 The company reported after-tax income from continuing operations of $1,014,457, or 14 cents per share, for the fourth quarter of 1992 compared with $253,590, or 3 cents per share, for the fourth quarter last year. Revenues from continuing operations were $10,288,459 for the recent fourth quarter, 80 percent above revenues for the fourth quarter of 1991 of $5,701,062.
 For the full year, the company reported after-tax income from continuing operations of $4,422,688, or 59 cents per share, plus a cumulative benefit of $185,000, or 2 cents per share, for a total of $4,607,688, or 61 cents per share. These results compare with after-tax income from continuing operations of $1,376,943, or 19 cents per share, plus an extraordinary credit of $170,000, or 2 cents per share, for a total of $1,546,943, or 21 cents per share, in 1991. The 1992 benefit reflects the cumulative effect of the adoption of the Statement of Financial Accounting Standards No. 109, related to accounting for income taxes. In 1991, the extraordinary credit resulted from the utilization of a net operating loss carryforward. Revenues from continuing operations were $39,247,926, 91 percent above revenues in 1991 of $20,576,673.
 "We are pleased with the results from continuing operations," Mitchell continued. "The outlook for our business is very promising. Gross sales production in 1992 reached a record $583 million, more than double the level in 1991. We anticipate continued growth in 1993 for the insurance products, as well as from the sales of mutual funds, initiated in February 1993."
 Spear Financial Services, through its wholly-owned subsidiary, James Mitchell & Co., is a leading marketer of annuities and other financial products to customers of financial institutions.
 SPEAR FINANCIAL SERVICES INC. FINANCIAL HIGHLIGHTS
 Fourth Quarter
 1992 1991 1990
 Total Revenue $ 10,288,459 $ 5,701,062 $ 4,639,178
 Total Operating
 Expenses (8,563,644) (5,208,867) (4,365,577)
 Income from continuing
 operations before income
 taxes, extraordinary item
 and accounting change 1,704,615 492,195 273,601
 Provision for income taxes (690,358) (236,605) (117,113)
 Income from continuing
 operations before extraordinary
 item and accounting
 change 1,014,457 253,590 156,488
 Extraordinary item --
 net operating loss
 carryforward 0 0 0
 Cumulative effect of change
 in accounting for income
 taxes 0 0 0
 Income (loss) from discontinued
 operations, net of income
 taxes (2,441,359) 39,400 (33,159)
 Net income $ (1,426,902) $ 292,990 $ 123,329
 Earnings per share:
 Income from continuing
 operations before
 extraordinary item and
 accounting change $0.14 $0.03 $0.02
 Extraordinary item and
 accounting change 0.00 0.00 0.00
 Discontinued operations (0.33) 0.01 0.00
 Net income ($0.19) $0.04 $0.02
 Weighted average shares
 outstanding
 primary and fully
 diluted 7,450,656 7,313,329 7,147,198
 Year to Date
 1992 1991 1990
 Total Revenue $ 39,247,926 $ 20,576,673 $ 17,484,600
 Total Operating
 Expenses (31,605,888) (16,065,996) (16,623,385)
 Income from continuing
 operations before income
 taxes, extraordinary item
 and accounting change 7,642,038 2,510,677 1,861,215
 Provision for income
 taxes (3,219,350) (1,133,734) (647,857)
 Income from continuing
 operations before extraordinary
 item and accounting
 change 4,422,688 1,376,943 1,013,356
 Extraordinary item --
 net operating loss
 carryforward 0 170,000 150,008
 Cumulative effect of change
 in accounting for income
 taxes 185,000 0 0
 Income (loss) from discontinued
 operations, net of income
 taxes (2,912,225) 199,151 (69,693)
 Net income $ 1,695,463 $ 1,746,094 $ 1,073,473
 Earnings per share:
 Income from continuing
 operations before
 extraordinary item and
 accounting change $0.59 $0.19 $0.14
 Extraordinary item and
 accounting change 0.02 0.02 0.02
 Discontinued operations (0.38) 0.03 (0.01)
 Net income $0.23 $0.24 $0.15
 Weighted average shares
 outstanding
 primary and fully
 diluted 7,631,936 7,176,298 7,110,506
 -0- 3/31/93
 /CONTACT: Doug Sherk or Jenifer Kirtland, 415-296-7383, or Michele Katz or Miriam Adler, 212-986-5900, all of Morgen-Walke, for Spear Financial/
 (SFNS)


CO: Spear Financial Services Inc.; James Mitchell & Co. ST: California IN: FIN SU: ERN

GT-BR -- SF004 -- 1307 03/31/93 06:31 EST
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