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NETWORK FINANCIAL SERVICES CLOSES MORTGAGE BANKING ACQUISITION; DOUBLES MORTGAGE ORIGINATION VOLUME

 SAN JOSE, Calif., Aug. 30 /PRNewswire/ -- Network Financial Services Inc. (NASDAQ: NETW) today announced that it has completed the acquisition of "Westmark Mortgage Corporation," the mortgage banking subsidiary of Primark Corporation (NYSE: PMK) for $6 million, $3.5 million tendered at closing with the balance of $2.5 million to be paid over three years at 7 percent.
 "This is a significant step for Network Financial Services and represents the results of months of negotiations and extensive due diligence work," said Lee Danna, Network's chairman and chief executive officer. "Combining operations with Westmark will more than double Network's annual mortgage origination volume to approximately $500 million. In fiscal 1992, Network and Westmark's combined revenues would have been approximately $25 million, compared to $14 million for Network on a stand-alone basis. In addition, we believe we can realize approximately $1.2 million in annual overhead cost savings by combining the operations. Finally, as part of the acquisition, Network acquires a $430 million mortgage servicing portfolio which generated almost $900,000 in profits last year.
 "Network will realize immediate revenue and earnings gains from the acquisition," Danna continued. "Even more important, by integrating our two companies' management teams we will create a stronger company than either standing alone. And, I am happy to announce that John Schneider, Westmark's chief executive officer, will continue in that position and join Network's board of directors. I believe his management and mortgage banking experience will prove invaluable to our continued growth and success.
 "Finally, this acquisition will provide Network with the financial strength to fully capitalize on the opportunity presented by our 'ProSolutions' software, a state-of-the-art loan and insurance origination and real estate office management system," Danna concluded. "We plan to market the system to brokerage offices across the country, building a significant retail loan origination network. With the Westmark operation and management team on board, we believe Network is positioned to become a significant force in mortgage banking, residential real estate brokerage, home services and insurance in the 90s."
 Headquartered in San Jose, Network Financial Services consolidates all services required in buying or selling a home, providing "one-stop shopping" for a home, financing, insurance and home improvements. Network is the only public company in the real estate industry offering this type of consolidated service. The company has grown rapidly over the last several years and currently operates more than 30 offices with more than 375 agents and employees.
 -0- 8/30/93
 /CONTACT: Lee Danna of Network Financial Services, 408-475-1000; or Lise Needham or Stephanie Meyer of the Financial Relations Board, 415-986-1591, for Network Financial Services/
 (NETW PMK)


CO: Network Financial Services Inc.; Primark Corp.; Westmark Mortgage
 Corp. ST: California IN: FIN SU: TNM


TM -- SF005 -- 7057 08/30/93 11:36 EDT
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Publication:PR Newswire
Date:Aug 30, 1993
Words:458
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