MINNEAPOLIS, March 6 /PRNewswire/ -- Olympic Financial Ltd. (NYSE: OLM)
today announced that it has modified the terms of its previously announced
public offering of senior notes.  The Company will offer units consisting of
an aggregate of $300 million principal amount of senior notes together with an
aggregate of up to 2 million ten-year warrants.  Each warrant will entitle the
holder to purchase one share of the Company's common stock at a purchase price
of 110% of the market price for such common stock.
    In connection with this modification to its offering, Olympic will add the
following additional disclosure to the prospectus to be used in connection
with the offering:
    On February 26, 1997, the Company was served with a complaint in Texas
state court alleging that the named plaintiffs' new car loan had been
originated by a dealer at an annual percentage rate that was 0.1% above the
18.0% maximum allowed by Texas law and assigned to the Company.  In addition,
this complaint seeks certification of a class of plaintiffs consisting of
(i) all persons who purchased a new motor vehicle from the named defendant
dealer within the preceding four year period pursuant to a retail installment
contract with an annual percentage rate in excess of 18.0% and (ii) all
persons who purchased a new motor vehicle from any dealer within the state of
Texas within the preceding four year period pursuant to a retail installment
contract with an annual percentage rate in excess of 18.0% and which contract
was assigned to the Company.  The Company has reviewed the allegations
contained in this lawsuit and does not believe that this litigation will have
a material adverse effect on the Company's financial condition or results of
operations.  This belief is based in part on the Company's understanding,
after consultation with Texas counsel, that under Texas law the maximum
damages recoverable if a class were certified in the case would not exceed
approximately $200,000 in the aggregate.
    In connection with its review of the allegations contained in this
complaint, the Company conducted a review of all loans that the Company has
purchased since inception.  The Company determined that the Company's "buy
rate" (the rate of interest that the Company informs dealers it is willing to
accept when purchasing a given loan) has in substantially all cases been below
the maximum permissible interest rate under applicable state law.  In
approximately 2,500 of the approximately 470,000 loans that the Company has
purchased since inception, however, the ultimate contract rate to borrowers
exceeded such maximum permissible rates.  The Company believes that this
resulted primarily from the amount of dealer participation fees or related
fees and amounts added to the Company's "buy rate" by dealers.  The Company
has taken action that it believes will prevent a recurrence of purchases of
such loans.  Under the terms of the Company's agreements with its dealers,
dealers are prohibited from charging contract interest rates in excess of the
statutory maximum rates.
    The Company intends to take such action as it deems appropriate under
applicable state law to effect cures of such loans where available (including
in Texas) and otherwise to limit its exposure to claims by borrowers.  As to
all such loans, the Company has recourse against the originating dealer, which
the Company intends to pursue as it deems appropriate.  The Company is likely
to be required to repurchase any such loans owned by securitization trusts.
Following repurchase, the Company may be able to resecuritize certain of such
loans.
    This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended.  These statements include
statements regarding intent, belief or current expectations of the Company and
its management.  Shareholders and prospective investors are cautioned that any
such forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties that may cause the Company's
actual results to differ materially from the results discussed in the
forward-looking statements.  In particular, there can be no assurance as to
the effectiveness of the remedial steps the Company has taken or intends to
take with respect to loans having contract rates that exceeded maximum
permissible rates.  Similarly, there can be no assurance that the Company's
past purchase of such loans or any current or future litigation relating to
such loans will not have a material adverse effect on the Company's financial
condition or results of operations.
    Olympic Financial Ltd. is a Minneapolis-based consumer finance company
which purchases, sells and services retail installment contracts for new and
used automobiles originated by more than 7,700 dealers nationwide.  Olympic is
the largest independent provider of automobile financing.  The Company, which
was founded in 1990, acquires loans through Regional Buying Centers in
Arizona, Northern and Southern California, Colorado, Florida, Georgia,
Massachusetts, Minnesota, Missouri, New York, North Carolina, Ohio, Tennessee,
North, South and West Texas and Washington state, and has expanded its dealer
network to include dealers in 40 states.

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