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ESSEX FINANCIAL PARTNERS, L.P., ANNOUNCES COMPLETION OF THRIFT MERGER AND PARTNERSHIP RESTRUCTURING

 VIRGINIA BEACH, Va., May 7 /PRNewswire/ -- Essex Financial Partners, L.P. (AMEX: ESX), announced today that the merger of its savings banks and restructuring of the Partnership have been consummated. As a result of the merger, Essex Savings Bank, FSB, the Partnership's North Carolina-based subsidiary, is now in compliance with all regulatory capital standards. According to Gene D. Ross, president and chief executive officer of the Partnership's general partner, the two transactions enable the Partnership to overcome its two most significant obstacles, the deficient regulatory capital status of Essex Savings Bank and Essex Mortgage Corporation's (EMC) defaults under the Essex 11's debt securities.
 Effective May 5, 1993, Essex Savings Bank, Virginia, and Essex Savings Bank, Florida, were merged into Essex Savings Bank, North Carolina. In prior public disclosures, the Partnership has emphasized the importance of the merger. Ross stated, "The infusion of $3 million qualifies for regulatory purposes as capital for the North Carolina savings bank. The merger and the newly contributed capital allow the combined savings banks to exceed regulatory capital requirements." Essex Savings Bank is now adequately capitalized, and management believes that the completion of the merger will enable the combined Savings Bank to realize substantial reductions in operating costs, among other benefits.
 The Partnership's restructuring agreements provided for the Partnership to deliver two separate promissory notes to PaineWebber Capital Inc. (PWC). Under one agreement, in connection with the partnership's delivery of a $14.2 million, 10-year promissory note bearing an annual interest rate of 6.43 percent, PWC completed its previously announced offer to purchase all of the outstanding Essex 11's notes. In exchange for the Partnership's 10-year promissory note, the principal amount of which is subject to further adjustments, and the cash held by or on behalf of EMC, PWC delivered an amount of the Essex 11's notes for cancellation equal to the amount of cash being delivered to PWC. EMC is in the process of negotiating the sale of its mortgage servicing rights portfolio, and the net proceeds of that sale will be paid to PWC in exchange for additional amounts of Essex 11's notes. The remaining Essex 11's notes are expected to be delivered for cancellation in due course.
 Under a second agreement, the Partnership delivered a 7-year, $3 million promissory note bearing an interest rate of 5.39 percent, in exchange for $3 million paid to the Partnership by PWC. These funds were used to make the $3 million capital infusion into Essex Savings Bank, North Carolina, which made the merger possible. The capital infusion into Essex Savings Bank was also a condition to the installation of Thrift Management Services, Inc., as the new general partner of the Partnership. That transaction has now been completed, as well.
 According to Ross, since the removal and replacement of the former general partner, Essex Financial Group, Inc., on May 6, 1992, the majority of management's time has been absorbed planning, negotiating and closing these two important agreements. Ross stated: "Management and employees have worked very hard over the last 12 months and now are anxious to devote their energies toward the day-to-day business operations. Personally, I look forward to developing and implementing a business strategy that is in the best interest of our unitholders."
 -0- 5/6/93
 /CONTACT: Essex Financial Partners, L.P., Investor Relations, 804-431-5612/
 (ESX)


CO: Essex Financial Partners, L.P. ST: Virginia IN: FIN SU: TNM

TW-MH -- DC026 -- 5620 05/06/93 16:08 EDT
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Publication:PR Newswire
Date:May 6, 1993
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