MINNEAPOLIS, Dec. 2 /PRNewswire/ -- Arcadia Financial Ltd. (NYSE: AAC)
announced today that it expects 1997 fourth quarter loan purchases will be
approximately $600 million, compared to $760 million in the 1997 third
quarter.  As a result, the company expects earnings per share for the fourth
quarter to be lower than earnings per share reported in the 1997 third
quarter.
    Richard A. Greenawalt, Arcadia Financial's president and chief executive
officer commented, "Our continuing emphasis on more selective originations and
an overall slowdown in the market will result in our fourth quarter loan
purchases falling short of our initial targets.  We believe, however, that our
more selective loan purchases offer quality of earnings and cash flow benefits
that offset the near-term earnings gains we could achieve by growing our loan
portfolio more rapidly."  Greenawalt emphasized that credit quality trends and
loan loss recoveries continue to track company expectations.
    Arcadia Financial Ltd. is a Minneapolis-based consumer financial services
company specializing in purchasing, selling and servicing retail installment
contracts for new and used automobiles originated in 43 states.  The company,
founded in 1990, is the nation's largest independent provider of automobile
financing.  Its 18 Regional Buying Centers are located in Arizona; northern
and southern California; Colorado; Florida; Georgia; Maryland; Massachusetts;
Minnesota; Missouri; New York; North Carolina; Ohio; Tennessee; north, south
and west Texas; and Washington.
    This news release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected.  The most significant among these risks and
uncertainties are (1) the company's ability to achieve adequate interest rate
spreads, (2) the level of delinquencies, gross charge-offs and net losses, and
(3) the level of operating expenses.  Earnings may also be affected by the
effects of economic factors on consumer debt and by competitive pressures.
Additional risks which may affect the company's future performance are
detailed under the caption "Management's Discussion and Analysis - Cautionary
Statements" in the company's Quarterly Report on Form 10-Q filed November 12,
1997, and as set forth under the caption "Risk Factors" in the company
prospectus supplement dated October 3, 1997 to prospectus dated March 7, 1997.

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