Morgan Financial Corporation Announces Financial Results for the year ended December 31, 1996

Business Wire, Feb 26, 1997

TORONTO--(BUSINESS WIRE)--Feb. 26, 1997--Morgan Financial Corporation (TSE:MFT) today announced results for the year ended December 31, 1996.

1996 earnings were $743,000 compared to a loss of $8,589,000 for 1995.

The 1995 loss was attributed to a write-down in the value of Westbury Canadian Life Insurance Company, which was sold in 1996.

As announced in 1996, Morgan intends to satisfy its remaining liabilities and distribute its assets to its shareholders and dissolve. The estimated amount available for distribution continues to be approximately 8.4 cents a share. The distribution will not occur before July 1997, as certain Morgan assets are held in escrow until then.

In addition to receiving clearance from various governmental agencies Morgan must, before dissolving, also resolve the dissent and appraisal action proceedings begun by three Morgan shareholders in connection with the Westbury sale. Morgan's board has determined that the fair market value of the shares held by the dissenting shareholders was eight cents a share at the time of the Westbury sale and has offered this amount to them. Two dissenting shareholders, holding 3,044,000 shares, have not accepted this offer as of yet. Morgan is moving toward resolution of this issue as quickly as possible.

CONTACT: Morgan Financial Corp.

J. Rob Collins, 416/ 863-2519