Balboa Life & Casualty Wins Contract with WFS Financial Major deal to yield $38 Million a year for Balboa

IRVINE, CA (July 26, 2002) – Balboa Life & Casualty, a member of the Countrywide family of diversified financial services, announced today a large-scale, insurance agreement with WFS Financial, Inc. The deal will result in the addition of approximately $38 million in annual insurance premiums for Balboa.

"After comprehensive analysis, we selected Balboa Life & Casualty as a preferred provider for our specialized auto insurance needs," said Tom Wolfe, chief executive officer of WFS Financial. "Balboa's commitment to service, combined with their industry expertise, complements our business model and diversified product lines."

As one of the nation's largest independent automobile finance companies, WFS Financial specializes in the origination, securitization, and servicing of automobile contracts. Under this new agreement, Balboa will provide WFS Financial with creditor-placed insurance (CPI) coverage. This protection facilitates the transfer of credit risk off WFS.

"We're thrilled to form a committed partnership with the industry leader in automobile finance," said Drew Gissinger, managing director and president of Balboa Insurance Group. "This agreement highlights Balboa's steady growth and recognition as the leader in providing critical insurance services to financial institutions."

About Balboa Life & Casualty:
Balboa Insurance Group, Inc., is a subsidiary of Countrywide Credit Industries, Inc. The Balboa insurance companies, all subsidiaries of Balboa Insurance Group, Inc., are known collectively as Balboa Life & Casualty and consist of Balboa Insurance Company, Meritplan Insurance Company, Newport Insurance Company, Balboa Lloyds Insurance Company, Balboa Life Insurance Company and Balboa Life Insurance Company of New York. The Balboa Life & Casualty group is rated "A" (Excellent) by the A.M. Best Company, the oldest and most widely recognized rating agency dedicated to the insurance industry. This rating, based on performance and financial stability, is assigned to companies that have excellent balance sheet strength, operating performance and business profile. An "A" rating represents A.M. Best's opinion that Balboa Life & Casualty has a strong ability to meet ongoing obligations to policyholders. Balboa Life & Casualty is headquartered in Irvine, California, and has a network of sales and service centers throughout the country. To learn more about Balboa Life & Casualty, please visit www.balboainsurance.com.

About WFS Financial Inc: WFS is one of the nation's largest independent automobile finance companies. WFS specializes in the origination, securitization, and servicing of new and pre-owned automobile contracts through its nationwide relationship with over 7,500 automobile dealers.

Since 1985, WFS has securitized over $24 billion in 54 transactions, making it one of the top four issuers of automobile asset-backed securities in the U.S. As of December 31, 2001, WFS was servicing a contract portfolio totaling $8.2 billion comprised of approximately 690,000 customer accounts. WFS is a publicly owned company whose common stock is traded on the NASDAQ National Market System under the symbol WFSI.

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