LITCHFIELD FINANCIAL CORPORATION COMPLETES $25 MILLION OFFERING

Press Release: Litchfield Financial Corporation

May 29, 1999
Litchfield Financial Corporation (NASDAQ:LTCH) has announced that it has completed a public offering of $25 million of 10% Series A Trust Preferred Securities due 2029 of Litchfield Capital Trust I. Tucker Anthony Cleary Gull and Ferris, Baker Watts Incorporated were the underwriters of the offering. The Company will use the proceeds of the offering to support its business activities, as capital to support senior indebtedness and for other general corporate purposes.

Randy Stratton, President and CEO of Litchfield, commented, "We are pleased to be able to raise long-term capital at an attractive rate. We'll use the proceeds from these subordinated preferred securities to fully leverage our senior debt and bank line facilities as we continue to grow our business.'' Litchfield has $135 million of unsecured, senior debt outstanding and $311 million of committed bank lines and loan sale facilities.

Mr. Stratton continued, "With strong origination growth in our financial services, timeshare and land businesses, we believe we can use the proceeds of the offering to continue to achieve attractive returns for our shareholders.'' Last month Litchfield announced record first quarter originations of $98 million, a 45% increase over the first quarter of 1998. Litchfield's financial services, timeshare and land businesses originated $30 million, $48 million and $20 million of loans, respectively, during the quarter.

Litchfield is a diversified finance company that provides financing to creditworthy borrowers for assets not typically financed by banks. The company provides such financing by making loans to businesses secured by consumer receivables or other assets and by purchasing consumer loans.

Except for the historical information contained or incorporated by reference in this press release, the matters discussed or incorporated by reference herein are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors set forth under "Risk Factors'', as listed in the 1998 Annual Report on Form 10-K, as well as the following: general economic and business conditions; industry trends; changes in business strategy or development plans; availability and quality of management; and availability, terms and deployment of capital. Special attention should be paid to such forward-looking statements including, but not limited to, statements relating to (i) the Company's ability to execute its growth strategies and to realize its growth objectives and (ii) the Company's ability to obtain sufficient resources to finance its working capital needs and provide for its known obligations.