Markets Affected PAMM's Acquisition Deal

Market conditions have conspired to alter a deal between PacificAmerica Money Centers, Inc., Woodland Hills, Calif., and its potential acquirer, Fremont General Corporation.A new deal being structured now calls for a cash acquisition price that will be subject to change based on PAMM's ability to sell its I/O strip for a high enough price and its ability to maintain target loan sale prices over the next two years. If the I/O strip sells for a mutually agreed upon amount, PAMM shareholders will receive $6 per share for the company. Shareholders have the right to receive a total of up to an additional $4 per share, subject to achievement of certain target loan sale prices. General terms of the target loan sale price have been discussed but not all of the details have been fixed. The parties will work to finalize the terms and close the deal by the end of 1998. The transaction is still subject to completion of satisfactory due diligence, negotiation of a definitive agreement, receipt of a fairness opinion, receipt of a majority of PAMM stockholders and regulatory approval.