GMAC-RFC and Olympia Capital Announce Joint Development of Distressed Asset Business; $200 Million Investment to Drive Pan-European Expansion

GMAC-RFC and Olympia Capital Announce Joint Development of Distressed Asset Business; $200 Million Investment to Drive Pan-European Expansion

		GMAC-RFC LOGO GMAC-RFC (Residential Funding Corporation) logo. GMAC-RFC, a wholly owned subsidiary of General Motors Acceptance Corporation, is America's largest private-label issuer of mortgage-backed securities and a leading warehouse lender. The company leverages its strengths in securitization, lending and investment to offer a broad portfolio of innovative capital solutions. The company is headquartered in Minneapolis and operates in the United States, Europe, Latin America and Japan. Contact: http://www.rfc.com. (PRNewsFoto)[KI] MINNEAPOLIS, MN USA

LONDON, March 24 /PRNewswire/ -- GMAC Residential Funding Corporation (GMAC-RFC) and Olympia Capital ASA have signed an agreement calling for joint development of a distressed consumer asset business in Europe. Olympia currently acquires and collects distressed assets in Scandinavia and the U.K. The two companies plan to invest more than $200 million in the new business, initially expanding into Germany, Austria and Ireland and, eventually, into the rest of Europe. (Photo: http://www.newscom.com/cgi-bin/prnh/20000324/MNF002 ) "Olympia and GMAC-RFC share a common goal of providing shareholders and customers with dynamic, high-growth investment opportunities," said Tim Freeman, Managing Director, Strategy and Investments for GMAC-RFC's European business. "GMAC-RFC has been extremely successful with this business in the U.S. and Latin America -- Olympia has built a profitable, growing business in Norway, Sweden, Denmark and the U.K. We know the business formula and have a solid foundation for success. Now, we just need to execute." Per Erik Asmyr, Olympia's chief executive officer, said the partnership leverages unique strengths within each company. "This joint development with GMAC-RFC represents an important landmark for our shareholders," Asmyr said. "It allows us to make an important transition from a regional player in the distressed asset business to a truly pan-European enterprise. It adds strength, diversity and growth to an already successful portfolio." Before the agreement, GMAC-RFC held a minority interest in Olympia. The company has now increased its ownership from less than 5 percent to 34 percent during the first phase of the agreement. GMAC-RFC has acquired the holdings of all other minority shareholders at a price of NOK57.5 per share (US$6.82). GMAC-RFC will also acquire options expiring in 2002. If exercised, these options will increase GMAC-RFC's ownership to 50 percent. "It's a powerful combination," said Freeman. "GMAC-RFC brings years of related success, brand name recognition and a willingness to invest and grow the business. Olympia brings a strong business base and great company-wide talent. We expect great things from this relationship." Olympia was established in 1991 by Haakon Korsgaard and Per Erik Asmyr and is headquartered in Oslo. The company owns assets in Norway, Sweden, Denmark, Finland and the U.K. and operates collection centres in Oslo, Gothenburg and Bromley (England). GMAC-RFC, a wholly owned subsidiary of General Motors Acceptance Corporation, is America's largest private label issuer of mortgage-backed securities and home equity loan asset-backed securities. The company leverages its strengths in securitization, lending and investment to offer a broad portfolio of innovative capital solutions. The company is headquartered in Minneapolis and operates in the United States, Europe, Latin America and Japan. http://www.rfc.com