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                                                                      EXHIBIT 99

FOR IMMEDIATE RELEASE

Media Contact:
Anita Sen or Kirsten Clausen
Golin/Harris (for Telebank)
213/623-4200

                  TELEBANK TO INTRODUCE NO-ANNUAL-FEE INTERNET
                           CREDIT CARD WITH FIRST USA

       LATEST ADDITION TO GROWING LINE OF INTERNET-ENABLED VALUE PRODUCTS

         Arlington, VA (March 31, 1999) - Telebank
http://www.telebankonline.com), a leader in the nationwide delivery of high
value financial service products via the Internet, today announced the signing
of an exclusive agreement with First USA to offer an Internet-enabled credit
card.

         In keeping with Telebank's ten-year mission to provide value, the
Telebank True.net(TM) no-annual-fee credit card will feature an introductory
annual percentage rate of just 3.9% for five months and a 9.99% APR thereafter.
The Telebank True.net(TM) credit card will be issued by First USA, the world's
largest Visa credit card issuer.

         "For Telebank to offer a credit card, it has to provide our customers
with the value they've come to expect--the most competitive rates, low or no
fees, convenience and quality. And of course, the card has to be geared to the
special needs of our online banking customers," said Mitchell H. Caplan,
President and CEO of Telebank. "The Telebank True.net(TM) credit card is just
one of many products we intend to introduce in 1999 to establish
www.telebankonline as one of the most convenient one-stop personal finance
sites on the Internet." With the introduction of the True.net(TM) credit card,
Telebank customers can safely apply entirely online and securely access account
information, such as current balances and available credit, over the web.

         Setting the standard as an innovator in the banking industry, Telebank
created a "branchless banking" model in 1989 by replacing brick-and-mortar
branches with service through direct delivery channels. This direct delivery
model reduced operating costs by more than half, allowing Telebank to reward its
forward-thinking, value-conscious customers with a combination of premium yields
in the top one-percent nationally, no or low account fees, free Internet
checking, anywhere/anytime convenience, and quality customer service.
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         Telebank customers have a choice of using their preferred service
channel, including the Internet, telephone, fax and ATMs. Customers can log on
to the Telebank Web site and manage their accounts from the convenience of home,
24-hours-a-day, 7-days-a-week. Telebank's customer service representatives are
available by phone for extended hours, offering one-on-one service without the
hassles of long lines or traditional "banker's hours."

         Telebank has introduced Internet checking with its True.net(TM)
checking account, which gives account holders the convenience of completing
transactions, such as bill payments over the Internet, while yielding the
premium rates of a money market account. Telebank's Internet checking account
holders receive interest on account balances over $2,500, free unlimited online
bill payments, free Internet account access, free printed checks, a free
ATM/Debit card and pay no monthly fees.

         Telebank is a wholly owned subsidiary of TeleBanc Financial Corporation
(NASDAQ:TBFC). Telebank provides high value financial products and services to
customers in all 50 states through low-cost alternative delivery platforms,
including the Internet, telephone and facsimile. Telebank has over 50,000
accounts, more than $1.1 billion in deposits and $2.3 billion in assets.
Telebank can be accessed at www.telebankonline.com or 1-800-TELEBANK.


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