ContiFinancial Corporation Acquires Fidelity Mortgage Decisions Corporation

Business Wire, Oct 1, 1997

NEW YORK--(BUSINESS WIRE)--Oct. 1, 1997--ContiFinancial Corporation (NYSE:CFN) today announced the closing of the acquisition by its wholly-owned subsidiary, ContiMortgage Corporation, of 100% of the equity of Fidelity Mortgage Decisions Corporation ("FMD"). The definitive agreement was signed earlier this month, as previously announced.

FMD, headquartered in Lincolnshire, Illinois, is a wholesale and retail originator of fixed and adjustable rate "B/C" quality home equity loans. It has regional offices in Baltimore, Chicago, Minneapolis, Pittsburgh, Salt Lake City and Tampa, with approximately 150 employees. Through their extensive broker network, FMD originates loans approximating $30 million per month secured by properties in 34 states. FMD is currently rolling out a retail origination strategy which will expand its production channels and add to future loan volume through the addition of new branch offices in select locations and through a focus on telemarketing.

ContiFinancial is a consumer and commercial finance company with headquarters in New York City. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, purchaser, seller and servicer of home equity loans made to borrowers whose borrowing needs may not be met by traditional financial institutions. In addition, through ContiTrade Services L.L.C., the Company provides financing and securitization services and, through ContiFinancial Services Corporation, bond placement services to originators of a broad range of loans, leases and receivables, including loans for a variety of commercial real estate property types; home equity loans; home improvement loans; prime, sub-prime and non-prime auto loans; franchisee loans; time-share loans and equipment leases. -0- Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under the federal securities laws. There are many important factors that could cause ContiFinancial Corporation's and Fidelity Mortgage Decisions Corporation's actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, interest rate risk, prepayment speeds, delinquency and default rates, changes (legislative and otherwise) in the asset securitization industry, demand for ContiFinancial Corporation's and Fidelity Mortgage Decisions Corporation's services, the impact of certain covenants in loan agreements of ContiFinancial Corporation and Continental Grain Company, the degree to which ContiFinancial Corporation is leveraged, its needs for financing, and other risks identified in ContiFinancial Corporation's Securities and Exchange Commission filings.

CONTACT: Jerome M. Perelson

Senior Vice President

ContiFinancial Corporation

212/207-5402

or

Joseph Kist/Kerry O'Brien

Edelman Financial

212/704-8239 or 212/704-8292