FIRSTPLUS Financial Completes Acquisition of Freedom Mortgage Corporation

Business Wire, Sept 2, 1997

DALLAS--(BUSINESS WIRE)--September 2, 1997--FIRSTPLUS Financial Group, Inc. (Nasdaq: FPFG), has closed a transaction to acquire Freedom Mortgage Corporation ("Freedom"), a 12 year old mortgage originator headquartered in Salt Lake City, Utah. Under the terms of the agreement, FIRSTPLUS will issue common stock in exchange for all of the outstanding shares of Freedom. The merger will be accounted for as a pooling of interests.

Freedom has nine retail branch locations in four states including California, Nevada, Utah and Colorado. Freedom currently generates approximately $54 million in monthly loan volume which includes $8 million of B&C home equity loans ("B&C loans"), $10 million of high LTV second lien home improvement and debt consolidation loans ("High LTV loans"), and $36 million of conforming first lien loans.

The conforming loans and High LTV loans are primarily generated from Freedom's retail branch network and through its direct mail program, respectively. Freedom's B&C loans are generally purchased from brokers, although FIRSTPLUS has recently begun referring direct to consumer B&C applicatloans.

Eric C. Green, FIRSTPLUS' Presidenatform by referring FIRSTPLUS call center B&C his application rate within the next 120 days, as FIRSTPLUS Direct's (formerly Capital Direct) call center and our Denver, Colorado outbound call center shortly begin transferring B&C applications to Freedom."

Kevin Gates, Freedom's Chief Executive Officer, noted, "FIRSTPLUS affords Freedom and its employees an opportunity to become key elements of the FIRSTPLUS retail origination franchise. Onches) over the next 12 months, and increase our B&C loan originations to $75 million per month during this time frame. Additionally, with FIRSTPLUS' growing consumeorigination platforms, our cross-selling opporuld cause actual results to differ materially frs and securitizes consumer finance receivableso; Holly Springs, Mississippi; Columbus, Ohio; Columbia, South Carolina; Laguna Hills, California and a