Contact:   Brad Morris                              News Release
           (913) 441-2466                           OTC: AVFID


FOR IMMEDIATE RELEASE


                            ADVANCED FINANCIAL, INC.
                           COMPLETES RECAPITALIZATION

Shawnee,  Kansas, February 22, 1999 --- Advanced Financial,  Inc. ("AVFI" or the
"Company")  announced today that the recapitalization of the Company pursuant to
the  Company's  First  Amended  Joint Plan of  Reorganization  under  Chapter 11
Bankruptcy of the United State  Bankruptcy  Code had been  completed,  effective
February 19, 1999 (the "Effective Date").

On the Effective Date the  authorized  common stock of the Company was decreased
from 25,000,000 to 10,000,000 shares of common stock, $0.001 par value per share
and  authorized  preferred  stock was  decreased  from  10,000,000  to 1,000,000
preferred  stock,  $0.005 par value per share.  All  5,836,476  shares of Common
Stock and all 363,000 shares of Preferred Stock outstanding immediately prior to
the Effective Date were canceled as of the Effective Date.  3,000,000  shares of
new Common Stock were issued as of the Effective Date to  shareholders of record
immediately prior to the Effective Date and to creditors.  In addition,  certain
warrants and options were issued to creditors on the Effective  Date pursuant to
the plan of reorganization.

Management of the Company  believes that the completion of the  recapitalization
of the Company  represents a significant  step towards the  Company's  emergence
from  bankruptcy  reorganization,  which will allow the Company to pursue future
growth objectives.  In structuring the reorganization,  the Company attempted to
preserve a net operating loss ("NOL") of  approximately $8 million to $9 million
which will  afford the Company  significant  tax  savings  should the  Company's
future operations generate earnings.

Of the  3,000,000  new shares of Common  Stock  issued in the  recapitalization,
300,000  shares  were  issued to  holders of record of the  Preferred  Stock and
Common Stock immediately prior to the Effective Date. Such shareholder  received
 .0546 shares of new Common Stock for each canceled share of old Common Stock and
old Preferred Stock.






The Company also issued pursuant to the plan of  reorganization,  900,000 shares
of new Common Stock and 900,000 warrants to various  creditors of the Company on
the Effective  Date.  The warrants allow the holder to purchase one share of new
Common  Stock per warrant at a price of $1.25.  The warrants are callable by the
Company at 130% of the strike price and expire on March 31, 2002. First Mortgage
Investment  Co.("FMIC"),  a creditor  with  secured  claims  against the Company
received 1,800,000 shares of the new Common Stock. In addition, FMIC received an
option  to  acquire  an  additional  3,000,000  shares at $.50 per share or $1.5
million.

Stock  certificates  representing  shares of old Common Stock and old  Preferred
Stock became null and void and of no force and effect as of the Effective  Date.
Holders  of  certificates  representing  shares  of old  Common  Stock  and  old
Preferred  Stock  are not  required  to turn in their  certificates  to  receive
certificates  representing  shares of new Common Stock.  The Company's  transfer
agent will issue  certificates  representing  the shares of the new common stock
shortly.

The Company was required to satisfy several  conditions  prior to completing the
recapitalization.  Among them was completing an audit of the Company's financial
statements  and filing its annual  reports on Form 10-KSB for fiscal years ended
March 31, 1997 and 1998. The Company also filed its quarterly  reports,  on Form
10-QSB,  for the quarters ended June 30,  September 30, and December 31 for 1997
and  1998.  These  filings  brought  current  the  Company's  filings  with  the
Securities and Exchange Commission.  In addition, the Company completed the sale
of its office  building to FMIC on  February  19, 1999 at a sales price of $1.03
million.  After closing costs and paying off the  Company's  first  mortgage the
Company  realized net proceeds of $213,058.  These  proceeds will be used to pay
the administrative  expenses of the Company's bankruptcy and the balance will be
distributed to creditors pursuant to the Company's plan of reorganization.

On February 19, 1999, the Company  completed the acquisition of Cannon Financial
Company ("CFC") in exchange for shares of the Company's new Common Stock. CFC is
in the business of the Management and Collection of non-performing  receivables.
For additional  information,  see news release dated February 22, 1999, Advanced
Financial, Inc. Acquires Cannon Financial Company.

Also, on February 19, 1999,  the Company  received a financing  commitment  from
FMIC for $875,000. For additional  information,  see news release dated February
22, 1999, Advanced Financial, Inc. Receives an $875,000 Line of Credit.

Some of the matters discussed in this press release  constitute  forward-looking
statements  within the meaning of the securities laws. Actual results may differ
materially from those projected in such  forward-looking  statements as a result
of a variety  of risks  and  uncertainties.  Investors  are  cautioned  that all
forward-looking statements involve risk and uncertainty.