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METROPOLITAN FINANCIAL TO SPIN-OFF EDINA REALTY AND EQUITY TITLE

 MINNEAPOLIS, April 22 /PRNewswire/ -- Metropolitan Financial Corporation (NYSE: MFC) announced today that the company's board of directors has approved a plan under which the company will distribute the stock of its real estate sales and brokerage subsidiary, Edina Realty, Inc., to shareholders in what is expected to be a tax-free spin- off. The spin-off will also include Metropolitan's title closing company, Equity Title Services, Inc., which will become a subsidiary of Edina Realty subsequent to the transaction. Edina Realty has been one of the Twin Cities largest real estate sales and brokerage companies for many years and Equity Title is one of the largest companies providing residential closing and title services in the Twin Cities.
 Metropolitan Financial Corporation officials stated that the record date for the distribution would be in the fourth quarter of this year and that the distribution is expected to be completed before year end.
 Shareholders of Metropolitan as of the record date will receive approximately seven shares of stock in Edina Realty for every 100 shares of Metropolitan Financial Corporation stock they own. The distribution ratio is based on Metropolitan Financial's current number of shares outstanding and would be adjusted prior to the distribution for any stock dividends, stock splits, or stock distributions pursuant to a completed acquisition and/or merger. The ratio means that Edina Realty would have approximately two million shares outstanding subsequent to the distribution.
 Metropolitan Financial Corporation acquired Edina Realty and Equity Title in November of 1988. In 1992, Edina Realty and Equity Title combined contributed approximately seven percent of Metropolitan's net income. The actual spin-off will not have any material impact on Metropolitan's income statement.
 Norman M. Jones, chairman and chief executive officer of Metropolitan Financial Corporation, said, "The objectives that Metropolitan Financial Corporation and Edina Realty had in joining forces in 1988 have been met successfully. Edina Realty and Metropolitan have played a large and significant role in each other's success these past four and one-half years. Edina Realty has enjoyed three consecutive years of record results in 1990, 1991 and 1992, while Metropolitan has reported four consecutive years of record growth in core operating earnings."
 Jones continued, "This spin-off helps each company meet new and more challenging objectives. First, it enables Metropolitan Financial Corporation to have the flexibility to obtain multiple thrift holding company status as a means to facilitate further growth and profitability. Second, it enables Edina Realty to continue its growth by providing its management a means by which it can facilitate additional acquisitions: a publicly traded stock."
 Roger Rovick, chairman of the board of Edina Realty, said, "This represents a greater opportunity for the management, employees and sales associates of Edina Realty. In effect it signals the maturation of Edina Realty as a company. Our new structure will allow us access to capital markets and more creative options for acquisitions. In addition, we will enjoy more referrals, more publicity and a wider following."
 Both chairmen indicated that the relationships established between Metropolitan and Edina Realty since 1988 would be maintained after the spin-off. Metropolitan's insured savings bank subsidiary, Metropolitan Federal Bank, fsb, will continue to have branches in Edina Realty offices, including the right to enter new locations as Edina continues to grow. Additionally, the companies will work closely on mortgage loan production and expect that relationship to continue, most likely through a joint venture structure.
 If the transaction were to take place today, Edina Realty would be one of only two publicly traded real estate sales and brokerage companies and based on available data, the largest such company in the country.
 Metropolitan Financial Corporation is one of this nation's largest publicly traded thrift institutions. Its full service retail consumer savings bank, Metropolitan Federal Bank, operates over 160 offices in the states of Minnesota, North Dakota, Iowa, South Dakota, Nebraska, Wisconsin and Arizona. The company also has two pending acquisitions in Kansas expected to close by mid year.
 The company has 28 million shares of common stock outstanding and is listed on the New York Stock Exchange under the symbol MFC.
 -0- 4/22/93
 /CONTACT: William P. Bartkowski of Metropolitan Financial Corporation, 612-928-5000/
 (MFC)


CO: Metropolitan Financial Corporation; Edina Realty ST: Minnesota IN: FIN SU:

KH -- MN010 -- 9307 04/22/93 10:33 EDT
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Publication:PR Newswire
Date:Apr 22, 1993
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