[STRATFORD AMERICAN LETTERHEAD]

FOR IMMEDIATE RELEASE

STRATFORD AMERICAN CORPORATION ANNOUNCES REVERSE SPLIT

         PHOENIX,  Ariz.  --  (BUSINESS  WIRE)  -- July  17,  1998 --  Stratford
American  Corporation (OTC Bulletin Board: STFA) today announced that it intends
to effect a 15-to-1  reverse  split of its Common  Stock on July 20,  1998.  The
split was approved by the Company's shareholders on July 8, 1998.

         As a  result  of  the  reverse  split,  each  fifteen  (15)  shares  of
Stratford's  Common  Stock  issued  as of July 20,  1998  will be  automatically
changed and  reclassified  into one (1) share of Stratford's  post-split  Common
Stock.  Fractional  interests resulting from the split will be rounded up to the
nearest whole share.  For example,  a shareholder  holding 150 shares before the
split  would be the  holder of 10  shares  after the  split,  and a  shareholder
holding 100 shares  before the split  would be the holder of 7 shares  after the
split. The split will not affect any shareholder's proportionate equity interest
in the Company, other than a relatively slight adjustment which may occur due to
the rounding up of fractional shares, or any person's rights as a shareholder.

         The Company's transfer agent, Harris Trust and Savings Bank, will serve
as the  Exchange  Agent for the split.  The Company  will send  instructions  to
shareholders  with procedures for exchanging  their existing share  certificates
into certificates  representing the post-split Common Stock. Shareholders should
not  send  any  stock  certificates  to the  Company,  and  should  not send any
certificates  to the Exchange Agent until they have received  instructions  from
the Company.

         Following the split,  the Company will have  100,000,000  shares of its
Common Stock  authorized,  will have  approximately  5,871,787 shares issued and
outstanding,  and will  have  approximately  94,128,213  shares  authorized  but
unissued and available for future  issuance.  The Company  anticipates  that its
trading symbol will be "STFAD" for a period of  approximately  30 days following
July 20, 1998 and will once again be "STFA" following this period. The new CUSIP
number for the Company's post-split Common Stock will be 86279E 2 0 1.

         The  Company is  engaged  primarily  in the  business  of  leisure  and
commercial car rental in the State of Arizona. It is the exclusive franchisee of
Dollar  Rent A Car in all  Arizona  counties  except  Coconino,  Pima and Navajo
Counties.  The Company  rents cars,  trucks and  passenger  vans to business and
leisure travelers and others at six locations,  including all three terminals at
Phoenix Sky Harbor International Airport.

Contact:       Stratford American Corporation
               Timothy A. Laos  (602) 224-2310