Crown NorthCorp Announces Sales and Review of Strategic Alternatives

Business Wire, May 17, 1999

COLUMBUS, Ohio--(BUSINESS WIRE)--May 14, 1999--

CROWN NORTHCORP (OTC BB:ASET) -- Crown NorthCorp, Inc., a financial services firm, announces that it has been reviewing its strategic and financial alternatives with the investment banking firm of Legg Mason Wood Walker Inc.

As part of this process, Crown announces that it has entered into separate agreements to sell its investments in Europe for $2.9 million and its Columbus headquarters for approximately $1.6 million in a sale and leaseback transaction.

Ronald E. Roark, chairman and chief executive officer of Crown, said, "Recent developments in the capital markets present opportunities for Crown to grow its domestic asset management and servicing businesses and its capabilities as a rated servicer. To maximize these opportunities, Crown is actively seeking to expand its capital base through strategic alliances, mergers or other means and to focus the company's resources on its core asset management and servicing businesses. The transactions the company is announcing today are an integral part of this plan in that they will enhance the company's liquidity and ability to participate in financial transactions. In our efforts to maximize value, we are pleased to have the benefit of Legg Mason's expertise in and understanding of the financial services industry."

Legg Mason Wood Walker Inc. is the investment banking arm of Legg Mason Inc. (NYSE:LM) and provides strategic advice with respect to mergers and acquisitions as well as real estate, brokerage and mortgage banking services.

Crown provides comprehensive services to commercial real estate markets including loan servicing and third-party special servicing and asset management. In addition to its Columbus headquarters, Crown operates through offices in Atlanta, Dallas and Bethesda, Maryland.

This press release contains forward-looking statements including, without limitation, statements regarding the outlook for future operations and Crown's efforts to expand business lines, complete strategic alliances or mergers or to implement other business plans. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described herein. These risks and uncertainties include, but are not limited to, developments in the capital markets, economic conditions, increased competition in the markets Crown serves and pending alliances or business combinations. We refer you to the documents Crown files with the Securities and Exchange Commission from time to time which contain additional, important factors that could cause its results to differ from its current expectations and the forward-looking statements contained in this press release.

http://www.crownnorthcorp.com