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BACKGROUNDER ON CALIFORNIA FEDERAL BANK STOCK SPLIT

 LOS ANGELES, Feb. 24 /PRNewswire/ -- The following is background information for registered representatives and their clients provided by California Federal Bank (NYSE: CAL) on the bank's stock split:
 In an effort to help you to better serve your clients, California Federal Bank is providing detailed information on the upcoming 1-for-5 reverse stock split and its affect on the common stock and warrants.
 Reverse Stock Split
 On Feb. 28, 1993, California Federal Bank will effect a 1-for-5 reverse stock split which will reduce the bank's outstanding common shares from approximately 125 million at Dec. 31, 1992, to approximately 25 million shares. A shareholder will receive one new share of California Federal Bank stock for every five bank shares owned at the close of business on Friday, Feb. 26, 1993. (Fractional shares will be paid in cash based upon the closing price on Feb. 26, 1993.)
 By reducing the number of outstanding shares through a reverse stock split, California Federal Bank's stock is expected to trade at a price high enough to be purchased on margin. Additionally, the higher price is expected to make the stock more attractive to institutional investors.
 We believe that it is important to inform your clients that a reverse stock split, of and by itself, has no fundamental impact on the underlying value of your investment. It is a mechanism to make the California Federal Bank stock more attractive to a wider range of investors. However, reverse stock splits sometimes result in an imbalance between the stock price before the split and the adjusted price following the split.
 Effect on Warrants
 CalFed Inc. stockholders of record on Dec. 16, 1992, received 0.541 of a warrant (NASDAQ: CALWW) for each share of California Federal Bank stock owned on that date following the company's successful exchange offer and restructuring. It was previously reported that, from June 1-30, 1994, holders would be entitled to exercise each warrant to purchase one share of California Federal Bank stock at $2.10 per share. However, as a result of the effect of the reverse stock split on the warrants, holders in June 1994 will need five warrants and $10.50 to purchase one share of California Federal Bank stock. (Exercises for fractional shares will be paid the difference between the exercise price and the market price at the time of exercise in cash.)
 There will be no need for warrant holders to exchange their warrant certificates for new certificates following the reverse stock split.
 -0- 2/24/93
 /CONTACT: California Federal Bank Investor Relations Division, 213-932-4200/
 (CAL CALWW)


CO: California Federal Bank ST: California IN: FIN SU:

JL-LS -- LA009 -- 9688 02/24/93 06:01 EST
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Date:Feb 24, 1993
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