Metropolitan Mortgage & Securities Co., Inc. Acknowledges Action by Washington Insurance Commissioner, Will Reexamine Reorganization Options SPOKANE, Wash., March 5 /PRNewswire/ -- Metropolitan Mortgage & Securities Co., Inc. today acknowledged action taken this week by the Washington State Office of the Insurance Commissioner (the "OIC") to initiate a voluntary rehabilitation of, appoint a receiver for, and assume control of the Company's wholly owned subsidiary, Western United Life Assurance Company ("WULAC"). Since December 2003, the OIC has been engaged in supervising WULAC. "We understand that the Commissioner took this action to ensure the financial protection of WULAC," said William A. Smith, Metropolitan's Chief Financial Officer. "We believe that the OIC's actions are taken to protect WULAC's policyholders and annuitants." On February 4, 2004, Metropolitan filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Metropolitan's wholly owned subsidiary, Western United Holding Company, which is the direct parent of WULAC, was not included in that filing and have not sought bankruptcy protection. The actions of the OIC did not result in an immediate change of that company's management team. Nevertheless, these actions mayaffect Metropolitan's ability to effect a reorganization and has caused the Company to consider other options besides the previously announced debt-for-equity reorganization. Metropolitan remains committed to fulfilling its obligation to maximize the value of the bankruptcy estate for the benefit of the Company's creditors. This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of1934. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and the actual results could differ materially as a result of known and unknown risks and uncertainties, including: the outcome of the voluntary rehabilitation and receivership; the outcome of the Chapter 11 process; current and future litigation concerning the Company; the outcome of discussions with the Company's creditors; general economic conditions; future trends and other risks, uncertainties and factors disclosed in the Company's filings with the Securities and Exchange Commission. Finally, there may be other results not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. You should not place undue reliance on any forward-looking statement. The Company assumes no obligation to update any forward-looking statement as a result of new information or developments, except as may be required by securities laws. DATASOURCE: Metropolitan Mortgage & Securities Co., Inc. CONTACT: Bill Smith, Chief Financial Officer of Metropolitan Mortgage & Securities, Co. Inc., +1-509-835-2811 Web site: http://www.metmtg.com/

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