MINNEAPOLIS, Dec. 4 /PRNewswire/ -- Arcadia Financial Ltd. (NYSE: AAC)
announced today the pricing of $600 million of automobile receivables-backed
securities through Donaldson, Lufkin & Jenrette Securities Corporation,
BancAmerica Securities, Inc., and J.P. Morgan & Co.
    This transaction, when added to the remaining 1997-C prefund, which was
completed this quarter, gives Arcadia the possibility of selling up to $686
million of automobile loans in the fourth quarter of 1997.
    The coupon cost to the investor was approximately 6.32% compared to the
APR of loans in the initial delivery of approximately 16.51%, giving Arcadia a
gross interest spread before hedges of approximately 10.19%.
    The securities are issued via an owner trust, Arcadia Automobile
Receivables Trust, 1997-D, in four classes:

                          Average
  Security     Amount        Life     Coupon          Price        Yield
    A-1     $63,600,000     0.252     5.8875%      1.00000000     5.8875%
    A-2    $196,000,000     0.998      6.125%      0.99989587      6.215%
    A-3    $258,000,000     2.536       6.20%      0.99931510      6.311%
    A-4     $82,400,000     3.889       6.35%      0.99965350      6.445%

    The Class A-1 Notes will be rated A-1+ by Standard & Poor's and P-1 by
Moody's.  The Class A-2, A-3 and A-4 Notes will be rated AAA by Standard &
Poor's and Aaa by Moody's.  Timely principal and interest on the Notes are
guaranteed by an insurance policy provided by Financial Security Assurance
Inc. ("FSA").  The ratings by Standard & Poor's and Moody's of the Notes will
be based on the issuance of the insurance policy provided by FSA.
    Use of the owner trust in this transaction enables Arcadia to offer
multiple, sequential-pay securities and to prefund a portion of the trust,
thereby issuing a larger amount of securities than the amount of receivables
initially available.  The Company anticipates initial delivery to the trust of
approximately $420 million in automobile loans acquired from Arcadia's network
of automobile dealers.  In addition, approximately $180 million will be
available to purchase receivables to be delivered in the near future.
    Richard A. Greenawalt, Arcadia's President and Chief Executive Officer
commented, "We are very pleased with the structure and pricing of this
securitization.  Despite a recent weakness in the asset-backed securitization
marketplace, the company continues to illustrate its proven ability to access
this marketplace on favorable terms."
    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.

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