Approved Financial Corp. Reports Operating and Financial Results for 2001

Business Wire, April 5, 2002

Business Editors

VIRGINIA BEACH, Va.--(BUSINESS WIRE)--April 5, 2002

Approved Financial Corp. (OTCBB:APFN) Approved Financial Corp. reported a net loss of $2.6 million or $.48 per share for the year ended December 31, 2001 compared to a net loss of $3.3 million or $.60 for the same period in the year 2000. Charges of $2.9 million are included in the reported after tax loss of $2.6 million, which are related to a $1.9 million increase in the valuation allowance for the deferred tax asset and a $1.0 million charge for elimination of goodwill from prior acquisitions and a loss on disposition of premises and equipment associated with the sale of the office building that served as corporate headquarters before 1999. Excluding the charges to income related to elimination of goodwill and loss on disposition of premises and equipment for the periods, the pretax loss was $0.15 million for the twelve months ended December 31, 2001 compared to a pretax loss of $4.7 million for the twelve month period ended December 31, 2000.

The $1.9 million charge related to an increase in the valuation allowance for the deferred tax asset is included in the reported net loss for the three months ended December 31, 2001 of $2.3 million or $0.41 per share compared to a net loss of $1.2 million or $0.22 per share for the three months ended December 31, 2000. The pretax net loss was $.6 million for the three months ended December 31, 2001 compared to a pretax net loss of $2.0 million for same period in 2000.

Approved Financial Corp. is a Virginia corporation and through its wholly owned subsidiary, Approved Federal Savings Bank, primarily operates in the business of originating, servicing and selling residential mortgage loans secured by first and subordinated liens on residential properties. The Company sources mortgage loans through a network of mortgage brokers and an internal sales staff that originates mortgages directly with borrowers.

This press release is not a comprehensive disclosure of our current or future operations. We recommend that investors refer to the Form 10K as filed with the Securities and Exchange Commission ("SEC") on April 3, 2002 for the year ended December 31, 2001 and other SEC filings. Links to our current and historical SEC filings and Press Releases are available at http://www.businesswire.com/cnn/apfn.shtml. Copies of our SEC filings are available by mail upon request to: Approved Financial Corp. 1716 Corporate Landing Parkway, Virginia Beach, Va. 23454. Attention: Accounting Department/Investor Relations

MORTGAGE LOAN ORIGINATION VOLUME

The following table shows the loan originations in dollars and units for our wholesale (sourced by referral from mortgage brokers) and retail divisions for the three and twelve months ended December 31, 2001 and 2000. The retail originations include loans that are funded through other lenders ("brokered loans"). Brokered loans consist primarily of non-conforming mortgages that do not meet our underwriting criteria. All loans are residential mortgages.