Textron Financial Corporation Agrees to Purchase Green Tree Financial's Franchise and Aircraft Businesses

Business Wire, August 30, 1999

PROVIDENCE, R.I. and CARMEL, Ind.--(BUSINESS WIRE)--Aug. 30, 1999--

Textron Financial Corporation (TFC), a subsidiary of Textron Inc., and Green Tree Financial Servicing Corporation (Green Tree), a subsidiary of Conseco, Inc., have entered into a definitive agreement whereby TFC will purchase Green Tree's aircraft and franchise commercial finance divisions. TFC and Green Tree expect to complete the transaction by the end of the third quarter of 1999, subject to normal closing conditions. Terms of the agreement were not disclosed.

"This acquisition will significantly enhance our existing commercial finance businesses serving the aircraft and franchise industries and will position TFC for continued strong growth in these niche markets," said Lewis B. Campbell, Textron Chairman and Chief Executive Officer.

TFC Chairman, President and CEO Stephen A. Giliotti added, "We are very excited about the strategic and cultural fit of these two businesses with the family of TFC divisions. While solidifying TFC's leading market position in the aircraft and franchise industries, this acquisition further diversifies our customer base."

Bruce A. Crittenden, President of Conseco's finance group, said, "This divestiture is consistent with our intention to focus our capital and other resources on our core consumer businesses. Conseco's finance group, with nationwide operations and managed finance receivables of $42.2 billion, is one of America's largest consumer finance companies, with leading market positions in retail home equity mortgages, home improvement loans, and consumer and dealer floorplan loans for manufactured housing. We're proud of the solid aircraft and franchise businesses we built, and we are confident that they will continue to grow under Textron's ownership." Conseco said it expects to report an immaterial gain from the transaction.

With estimated 1999 managed receivables of approximately $750 million, the entities of Green Tree to be acquired by TFC provide secured financing to the general aviation and franchising industries through operations in St. Paul, Minnesota and Tempe, Arizona. The aviation finance business will continue to service owner operated aviation customers while the remainder of TFC's aviation finance activity will continue to be handled through its Fort Worth, Texas, office.

The addition of the Green Tree franchise business is expected to accelerate TFC's franchise finance strategy in what is currently one of the fastest-growing niches in specialized commercial finance. TFC's Franchise Finance Division is a funding source for US franchise operators seeking working capital or financing for equipment, site improvements, or acquisitions in a variety of retail and service businesses. The Green Tree operation, to be consolidated with TFC's existing Franchise Finance Division, will remain in Tempe, Arizona.

Headquartered in Carmel, Indiana, Conseco (NYSE:CNC) is one of middle America's leading sources for insurance, investment and lending products. Through its subsidiaries and nationwide network of insurance agents and finance dealers, Conseco provides solutions for both wealth protection and wealth creation to 12 million customers.

With over $5 billion in managed receivables and a twenty-year history of record earnings, Textron Financial Corporation is a diversified commercial finance company with three groups of products and services: term financing for Aircraft, Equipment and Golf (including the financing of Textron products); revolving credit arrangements; and specialty finance. Other services include syndications, asset management, portfolio servicing and insurance brokerage. More information about TFC is available at www.tfc.textron.com.

Textron Inc. (NYSE:TXT) is a $10 billion, global, multi-industry company with market-leading operations in Aircraft, Automotive, Industrial and Finance. Textron has a workforce of over 64,000 employees and major manufacturing facilities in 23 countries. Textron is among Fortune magazine's "America's Most Admired Companies."