SUMMARY:  Wedgestone Financial
                                                            WEDGESTONE FINANCIAL
                                                  ANNOUNCES LOSS ON GENESIS LOAN
                                                        AND DEFERRED TAX BENEFIT

CONTACT:  JEFFREY GOLDSTEIN
Wedgestone Financial
(212) 980-3883

           FOR RELEASE AT 5:00 PM E.S.T. ON MONDAY, DECEMBER 11, 1995
           ----------------------------------------------------------

         December  11,  1995,  Irwindale,   California  -  Wedgestone  Financial
(OTC-WDGF)  today  announced  that  it will  incur  a loss on a loan to  Genesis
Plastics,  Inc.  Wedgestone had made the loan to Genesis,  an unrelated plastics
recycler, in 1992. Genesis, had previously filed for protection under Chapter XI
of  the  United  States  Bankruptcy  Code  on  August  24,  1994  and  had  been
unsuccessful  in its efforts to secure a buyer for its  Charleroi,  Pennsylvania
recycling facility. Wedgestone held a senior security interest in the inventory,
receivables  and  certain  equipment  of  Genesis.  On  November  29,  1995,  in
accordance  with its rights under the loan  agreement  with Genesis,  Wedgestone
consented to the liquidation of the Genesis'  inventory and equipment  through a
public  auction.  As a result of this action,  Wedgestone will record a one time
loss of approximately $700,000 in December 1995.
         In an unrelated  matter,  Wedgestone  also announced today that it will
record a substantial deferred tax benefit in December 1995. This benefit derives
from the continued  favorable  sales and earnings  performance  of the Company's
Automotive Products business segment and management's  estimate of the Company's
future ability to utilize its net operating loss carryforward for federal income
taxes over the next three years..  The Company stated that, when taken together,
the sum of these two events will not have an adverse effect on 1995 earnings.
         Wedgestone  is  primarily  engaged  in the  business  of  manufacturing
automotive  parts for the light  duty truck  aftermarket.  It  manufactures  its
products in Irwindale, California; St. James, Minnesota and Pelham, Georgia. The
Company distributes its products through its national  distribution system under
the trade names Fey,  Tuff Bar,  Hercules  and Westin and  continues to actively
seek acquisitions to augment its internal growth.