FOR IMMEDIATE RELEASE
MONDAY, FEBRUARY 9, 1998

WEDGESTONE FINANCIAL
ERIC H. LEE
CHIEF FINANCIAL OFFICER
(626) 960-6762


                   WEDGESTONE FINANCIAL ANNOUNCES TENDER OFFER

     IRWINDALE, CALIFORNIA, FEBRUARY 9, 1998--Wedgestone Financial (OTC 
Bulletin Board: WDGF) announced today that its Board of Trustees had approved 
a tender offer by the Company to acquire all of the issued and outstanding 
shares of beneficial interest of the Company not owned by certain majority 
shareholders, who collectively own approximately 62.1% of the issued and 
outstanding shares.

     The offer price is $0.67 net per share to sellers in cash. On February 
6, 1998, the last full trading day prior to the announcement of the tender 
offer, the last sales price per share was $0.35. The Company will pay all 
fees and expenses of the tender offer, and tendering sellers will not be 
required to pay any brokerage fees or commissions.

     The tender offer was approved by the Company's independent trustees as 
well as by its full Board of Trustees. It is intended that the tender offer 
will be commenced at the earliest practicable time following reviews of the 
necessary documentation by the Securities and Exchange Commission. All 
remaining shares, if any, not purchased in the tender offer will be converted 
into the right to receive $0.67 net per share in a merger to be consummated 
as soon as practicable after the tender offer.

     John C. Shaw, Chairman of the Board of the Company, commented: "This 
transaction will give our shareholders, many of whom own less than 100 shares 
of stock, the opportunity to sell their shares at a substantial premium over 
historical market prices and at the same time avoid the fees and commissions 
of brokers. Further, many of these shareholders acquired an interest in the 
Company a long time ago when the Company's primary business was real estate 
mortgage lending. Since emerging from bankruptcy in 1992, the Company's 
strategy has shifted and it now engages in a significantly different line of 
business."

     Headquartered in Irwindale, California, Wedgestone Financial is 
primarily engaged in the manufacture and distribution of automotive 
aftermarket products for the light duty truck market.