PRESS RELEASE
                        IMPERIAL CREDIT INDUSTRIES, INC.
                             TODAY DECLARES DIVIDEND
                 DISTRIBUTION OF PREFERRED SHARE PURCHASE RIGHTS


FOR IMMEDIATE RELEASE
- ---------------------

TORRANCE, CALIFORNIA, OCTOBER 2, 1998 - The Board of Directors of Imperial
Credit Industries, Inc. ("Imperial Credit") (Nasdaq: ICII) has authorized a
dividend distribution of one Preferred Share Purchase Right on each outstanding
share of Imperial Credit's common stock.

The Rights are designed to assure that all of Imperial Credit's shareholders
receive fair and equal treatment in the event of any proposed takeover of the
Company and to guard against abusive tactics to gain control of the Company
without paying all shareholders a premium for that control. The Rights are not
being adopted in response to any specific takeover threat, but are a response to
the general environment.

The Rights are intended to enable all Imperial Credit's shareholders to realize
the long-term value of their investment in the Company. The Rights will not
prevent a takeover, but should encourage anyone seeking to acquire the Company
to negotiate with the Board prior to attempting a takeover.

The Rights will be exercisable only if a person or group acquires 15% or more
(25% or more for any person or group currently holding 15% or more) of Imperial
Credit's common stock or announces a tender offer the consummation of which
would result in ownership by a person or group of 15% or more (25% or more for
any person or group currently holding 15% or more) of the Company's common
stock. Each Right will entitle shareholders to buy one one-hundredth of a share
of a new series of junior participating preferred stock at an exercise price of
$40.

If a person or group acquires 15% or more (25% or more for any person or group
currently holding 15% or more) of Imperial Credit's outstanding common stock,
each Right will entitle its holder (other than such person or members of such
group) to purchase, at the Right's then-current exercise price, a number of
Imperial Credit's common shares having a market value of twice that price. In
addition, if Imperial Credit is acquired in a merger or other business
combination transaction after a person has acquired 15% or more (25% or more for
any person or group currently holding 15% or more) of the Company's outstanding
common stock, each Right will entitle its holder to purchase, at the Right's
then-current exercise price, a number of the acquiring company's common shares
having a market value of twice that price. The acquiring person would not be
entitled to exercise these Rights.

Prior to the acquisition by a person or group of beneficial ownership of 15% or
more (25% or more for any person or group currently holding 15% or more) of the
Company's common stock, the Rights are redeemable for $0.0001 per Right at the
option of the Company's Board of Directors.





The Board of Directors is also authorized to reduce the 15% ownership thresholds
referred to above to not less than 10%.

The  dividend  distribution  will be made on  October  12,  1998,  payable  to
stockholders of record on that date, and is not taxable to  stockholders.  The
Rights will expire on October 2, 2008.

Imperial Credit, a diversified financial services company, was formed in 1991
and has its headquarters in Torrance, California. The Company's major business
activities consist of the operation of five wholly owned subsidiaries: Southern
Pacific Bank, an industrial loan company specializing in lending to small
businesses and consumers; Imperial Business Credit, Inc., a commercial leasing
company specializing in equipment leasing to small businesses; Imperial Credit
Worldwide, Ltd., which manages Imperial Credit's international activities;
Imperial Credit Advisors, Inc. and Imperial Credit Commercial Asset Management
Corp., the manager for Imperial Credit Commercial Mortgage Investment Corp.
(Nasdaq: ICMI). The Company also holds a 38% interest in Franchise Mortgage
Acceptance Company (Nasdaq: FMAX), a lender specializing in loans to
franchisees. Imperial Credit and its subsidiaries offer a wide variety of
financial services and investment products nationwide.

This Press Release contains forward looking statements within the means of the
Private Securities Litigation Reform Act of 1995, which can be identified by the
use of forward-looking terminology such as "may," "will," "intend," "should,"
"expect," "anticipate," "estimate" or "continue" or the negatives thereof or
other comparable terminology. The Company's actual results could differ
materially from those anticipated in such forward-looking statements as a result
of certain factors, including those set forth in Registration Statements filed
with the Securities and Exchange Commission.

For further information contact:

                              Karen Montandon
                              Vice President - Investor Relations
                              Imperial Credit Industries, Inc.
                              (310) 791-8022

                              Paul Lasiter
                              Senior Vice President - Controller
                              Imperial Credit Industries, Inc.
                              (310) 791-8028