The parties have reached a tentative settlement, valued at at least $5 million, of a class action filed against FirstPlus Financial Group, Inc. (Pink Sheets: FPFX, formerly OTCBB: FPFX) and certain of its officers and directors by stockholders who purchased the company's common stock between August 19, 1996, and November 2, 1998. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. To recover under the settlement, a completed proof of claim postmarked no later than December 19, 2003, must be mailed to the claims administrator.

The settlement calls for the defendants to pay $5 million in cash. The settlement also includes an equity component consisting of ten percent of the current outstanding ownership interest in a private company, Capital Lending Strategies, LLC. The ownership interest in Capital Lending has not been valued and may not have any value now or in the future. The ownership interest in Capital Lending will be held in escrow until Capital Lending is required to file a registration statement with respect to the ownership interest, at which time the plaintiffs' co-lead counsel will cause, depending on the economic feasibility, distribution of the securities then constituting the ownership interest to eligible class members or the sale of the securities then constituting the ownership interest and cause distribution of the cash proceeds. However, after the seven year anniversary date of the assignment agreement, the plaintiffs' co-lead counsel may cause FirstPlus to repurchase the ownership interest if a registration statement relating to the ownership interest has not yet been declared effective by the Securities and Exchange Commission.

The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for October 14, 2003.