Metropolitan Mortgage & Securities to Delist Preferred Stock Company Will Not File Form 10-K as Scheduled SPOKANE, Wash., Dec. 26 /PRNewswire-FirstCall/ -- Metropolitan Mortgage & Securities Co., Inc. today announced that, in order to facilitate the trading of its Series E-7 preferred stock on the Over-the- Counter Bulletin Board (OTCBB), it plans to delist the preferred stock from trading on the American Stock Exchange (AMEX) and will file the requisite applications with AMEX and the Securities and Exchange Commission (SEC) by December 31, 2003. Trading in the Company's preferred stock had been halted by AMEX as of December 15, 2003, and the Company was notified on December 22, 2003 that AMEX planned to begin the process of delisting the stock. AMEX's decision to delist was pursuant to Sections 1003 and 1009 of the AMEX's Company Guide. Specifically, the AMEX conveyed to the Company the AMEX's belief that continued listing raised public interest concerns and that the Company did not comply with the listing or other agreements with AMEX. As a result of the delisting, the securities may be eligible for trading on an alternate exchange such as the OTCBB or the National Quotation Bureau, thus potentially enabling shareholders to buy and sell shares. At the same time, Metropolitan said that it will not file its Annual Report on Form 10-K with the SEC until February 1, 2004 at the earliest. The Company said its auditor, Ernest & Young, will not be able to complete its audit review by the original December 29, 2003, deadline because, among other reasons, the Company is believed to have incurred losses in excess of those disclosed in its June 30, 2003, Form 10-Q report, and a review of those results has yet to be completed. The Company also said it would suspend all payments, including interest and principal, on Metropolitan debentures and notes, effective 5:00 pm, Pacific time, on December 26, 2003. Finally, Metropolitan said that, in order to provide additional autonomy for its insurance subsidiary, Western United Holding Company, C. Paul Sandifur, Jr. has resigned as an officer and director of Western Holding and its wholly-owned subsidiary Western United Life Assurance Company. John Van Engelen, previously senior vice president of Western United Holding Company, has been elected president, CEO and chairman of the insurance holding company. Metropolitan Mortgage & Securities Co., Inc., incorporated in the State of Washington and headquartered in Spokane, had assets in excess of $1.7 billion at June 30, 2003. The forward-looking statements in this release concerning future events are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These and other risks are set forth in Metropolitan's reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. DATASOURCE: Metropolitan Mortgage & Securities Co., Inc. CONTACT: Mary Keller, Market Development & External Affairs for Metropolitan Mortgage & Securities Co., Inc., +1-509-835-2811, or +1-509-994-8368

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