Metropolitan Mortgage & Securities Issues Update

Metropolitan Mortgage & Securities Issues Update 


SPOKANE, Wash., Dec. 15  /PRNewswire-FirstCall/ -- Metropolitan Mortgage &
Securities Co., Inc. , together with its financial advisors, continues to
explore its strategic alternatives to address its short-term and long-term
liquidity concerns.

As previously announced, the company's affiliate, Metropolitan Investment
Securities, Inc. (MIS), a National Association of Securities Dealers, Inc.
(NASD) member firm, ceased operations and customer transactions on December 15,
2003.  MIS was the sole broker dealer for the sale of the company's securities
and MIS will no longer sell the company's securities.  Such sales have been in
the past a significant source of liquidity for the company.

The cessation of MIS' customer transactions and operations followed its entry
into a Letter of Acceptance, Waiver and Consent (AWC) with the NASD, which was
finalized on October 23, 2003.  The AWC settled allegations by the NASD that MIS
had inadequate supervisory procedures and engaged in fraudulent and unethical
sales practices in connection with the sale of debentures, investment
certificates and preferred stock issued by the company and another affiliated
company, Summit Securities, Inc.  MIS neither admitted nor denied the
allegations.  Pursuant to the AWC, MIS was censured and fined $500,000.  In
addition to other undertakings, MIS agreed to make restitution of approximately
$2.8 million to certain investors and to maintain for a five-year period a
special escrow account in the amount of $1 million for the benefit of additional
investors. 

DATASOURCE: Metropolitan Mortgage & Securities Co, Inc.



CONTACT:  MARY KELLER, MARKET DEVELOPMENT & EXTERNAL AFFAIRS of

Metropolitan Mortgage & Securities Co., Inc., [phone]

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