Mego Financial Corp. Announces the Acquisition of 42 Additional Units at Its Ramada Vacation Suites at Orlando Resort

Apr 12, 2001, 01:00 ET from Mego Financial Corp.

    LAS VEGAS, April 12 /PRNewswire/ -- Mego Financial Corp.
 (Nasdaq:   MEGO) announced today that its wholly-owned timeshare and land sales
 subsidiary, Preferred Equities Corporation, has acquired an additional 42 two-
 bedroom units at the Company's Ramada Vacation Suites at Orlando resort.
 Funds for the acquisition were provided by a $4.5 million acquisition and
 construction loan which will also be used for the complete renovation and
 refurbishment of the units. The timeshare weeks are expected to be available
 to purchasers by August of this year and could generate up to $31 million in
 revenues to the Company.
     The financing was provided by Heller Financial Inc., a major financial
 institution in the timeshare industry.  It included a renewal and extension of
 its existing $30 million receivables line of credit to the Company.
     The Orlando resort opened in June 1997, marking the company's entry into
 the nation's #1 timeshare destination.  The resort, strategically located just
 2 miles from Sea World, 10 miles from Universal Studios Theme Park and about
 8 miles from Epcot Center and Walt Disney World, now has 11 buildings
 containing 151 two-bedroom, two-bath suites and 11 one-bedroom suites, all
 with kitchens.  The property features a lake, pool, barbecue area and laundry
 facilities, as well as a fitness room, paddle boats, playground, gift and
 sundry shop and game room.  It is adjacent to the International Golf Course.
     Commenting on today's news, Jerome J. Cohen, President of Mego Financial
 Corp. stated, "We believe that our ability to secure financing for expansion
 in what is currently a tight credit market for our industry, speaks volumes
 about the strength and prospects of our timeshare and land sales business and
 the confidence that the financial community has in us.
     "We are excited about the expansion of our Orlando resort, which, like
 many of our strategically located properties, continues to experience heavy
 demand in the market."
     Mego Financial is a premier developer and operator of timeshare properties
 and a provider of consumer financing to purchasers of timeshare interests and
 land parcels through its wholly owned subsidiary, Preferred Equities
 Corporation, established in 1970.  Mego Financial is headquartered in
 Las Vegas, Nevada and has properties it operates under the banner of Ramada
 Vacation Suites in Nevada, New Jersey, Colorado, Florida, Hawaii and
 Louisiana.  Mego Financial also owns Central Nevada Utilities, serving a large
 portion of the fast-growing Palrump Valley, near Las Vegas.
     To receive Mego Financial's latest news and other corporate documents via
 FAX-no cost-please dial 1-800-PRO-INFO. Use Mego Financial's ticker symbol,
 MEGO.  Or view our pages on FRB's website www.frbinc.com .
 
     This press release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
 looking statements involve known and unknown risks, uncertainties or other
 factors which may cause actual results, performance or achievements of Mego
 Financial to be materially different from any future results, performance or
 achievements express or implied by such forward-looking statements. Factors
 that might cause such a difference, include, but are not limited to those
 discussed in the Management's Discussion and Analysis of Financial Condition
 and Results of Operations in Mego Financial's Annual Report on Form 10-K for
 the year ended August 31, 2000, and in the form 10Q for the quarter ended
 November 30, 2000, filed by Mego Financial Corp. with the Securities and
 Exchange Commission.
 
 

SOURCE Mego Financial Corp.
    LAS VEGAS, April 12 /PRNewswire/ -- Mego Financial Corp.
 (Nasdaq:   MEGO) announced today that its wholly-owned timeshare and land sales
 subsidiary, Preferred Equities Corporation, has acquired an additional 42 two-
 bedroom units at the Company's Ramada Vacation Suites at Orlando resort.
 Funds for the acquisition were provided by a $4.5 million acquisition and
 construction loan which will also be used for the complete renovation and
 refurbishment of the units. The timeshare weeks are expected to be available
 to purchasers by August of this year and could generate up to $31 million in
 revenues to the Company.
     The financing was provided by Heller Financial Inc., a major financial
 institution in the timeshare industry.  It included a renewal and extension of
 its existing $30 million receivables line of credit to the Company.
     The Orlando resort opened in June 1997, marking the company's entry into
 the nation's #1 timeshare destination.  The resort, strategically located just
 2 miles from Sea World, 10 miles from Universal Studios Theme Park and about
 8 miles from Epcot Center and Walt Disney World, now has 11 buildings
 containing 151 two-bedroom, two-bath suites and 11 one-bedroom suites, all
 with kitchens.  The property features a lake, pool, barbecue area and laundry
 facilities, as well as a fitness room, paddle boats, playground, gift and
 sundry shop and game room.  It is adjacent to the International Golf Course.
     Commenting on today's news, Jerome J. Cohen, President of Mego Financial
 Corp. stated, "We believe that our ability to secure financing for expansion
 in what is currently a tight credit market for our industry, speaks volumes
 about the strength and prospects of our timeshare and land sales business and
 the confidence that the financial community has in us.
     "We are excited about the expansion of our Orlando resort, which, like
 many of our strategically located properties, continues to experience heavy
 demand in the market."
     Mego Financial is a premier developer and operator of timeshare properties
 and a provider of consumer financing to purchasers of timeshare interests and
 land parcels through its wholly owned subsidiary, Preferred Equities
 Corporation, established in 1970.  Mego Financial is headquartered in
 Las Vegas, Nevada and has properties it operates under the banner of Ramada
 Vacation Suites in Nevada, New Jersey, Colorado, Florida, Hawaii and
 Louisiana.  Mego Financial also owns Central Nevada Utilities, serving a large
 portion of the fast-growing Palrump Valley, near Las Vegas.
     To receive Mego Financial's latest news and other corporate documents via
 FAX-no cost-please dial 1-800-PRO-INFO. Use Mego Financial's ticker symbol,
 MEGO.  Or view our pages on FRB's website www.frbinc.com .
 
     This press release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
 looking statements involve known and unknown risks, uncertainties or other
 factors which may cause actual results, performance or achievements of Mego
 Financial to be materially different from any future results, performance or
 achievements express or implied by such forward-looking statements. Factors
 that might cause such a difference, include, but are not limited to those
 discussed in the Management's Discussion and Analysis of Financial Condition
 and Results of Operations in Mego Financial's Annual Report on Form 10-K for
 the year ended August 31, 2000, and in the form 10Q for the quarter ended
 November 30, 2000, filed by Mego Financial Corp. with the Securities and
 Exchange Commission.
 
 SOURCE  Mego Financial Corp.