FirstPlus Financial Group, Inc. Launches Chapter 11 Case To Enhance Liquidity While...

FirstPlus Financial Group, Inc. Launches Chapter 11 Case To Enhance Liquidity
While It Reorganizes

Expected to Commence its Business Plans

BEAUMONT, Texas, June 24 /PRNewswire-FirstCall/ -- The Board of Directors of
FirstPlus Financial Group, Inc. (Pink Sheets: FPFX), announced today FirstPlus
has filed a voluntary petition for relief under chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the Northern
District of Texas, Dallas Division to enhance liquidity while it reorganizes.

The filing was precipitated by a series of events that led to a contraction in
FirstPlus' liquidity, impairing its ability to commence its new business plans
and continue operations. These series of events include mounting litigation
costs, other claims and the fact that the Company is not realizing any revenue
from its subsidiaries. This lack of liquidity was also due to a temporary
injunction entered by the Second Judicial Court of Washoe County, Nevada
ordering the Company to pay into the registry of that Court all of the
proceeds from a distribution the Company had received from the FPFI Creditor
Trust. These funds were to be used by the Company for a planned distribution
to shareholders and for working capital purposes. These series of events
resulted in severe constraints on the Company's liquidity position. Faced with
these constraints, FirstPlus filed a voluntary chapter 11 petition to
facilitate access to additional liquidity while it reorganizes to take better
advantage of FirstPlus' position to commence its business plans.

Subject to the Bankruptcy Court's approval, FirstPlus will retain Cox Smith
Matthews Incorporated as the Company's bankruptcy counsel. The Company
anticipates asking the Bankruptcy Court to approve the continued retention of
some or all of its advisors and special counsel to assist the Company in
connection with pending litigation, S.E.C. compliance, and other ancillary
matters.

"Today's filing allows FirstPlus to address its short-term liquidity
constraints as we navigate an historically challenging environment while we
focus on restructuring to address the company's long-term business plans,"
Robert O'Neal, Chairman and President said. "We appreciate the loyalty of our
directors and advisors during this challenging time."

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 concerning future
business conditions and the outlook for FirstPlus Financial Group, Inc. (the
"Company") is based on currently available information that involves risks and
uncertainties. These forward-looking statements include, without limitation,
statements regarding the Company's expectations concerning the bankruptcy
process and the commencement of its business plans. The Company's actual
results could differ materially from those anticipated in the forward-looking
statements as a result of these risks and uncertainties, including, without
limitation, (1) the impact of today's announcement on the Company's business
plans; (2) the ability of the Company to fund and execute its business plans;
(3) the ability of the Company to continue as a going concern; (4) the ability
of the Company to obtain approval of and operate pursuant to the agreement
with its secured creditor for the use of its cash collateral; (5) the ability
of the Company to obtain court approval of the Company's first day papers and
other motions in the Chapter 11 proceeding pursued by it from time to time;
(6) the ability of the Company to develop, pursue, confirm and consummate one
or more plans of reorganization with respect to the Chapter 11 cases; (7)
risks associated with third parties seeking and obtaining court approval to
terminate or shorten the exclusivity period for the Company to propose and
confirm one or more plans of reorganization, or the appointment of a Chapter
11 trustee or to convert the cases to Chapter 7 cases; (8) the ability of the
Company to obtain and maintain normal terms with service providers; (9) the
ability of the Company to maintain contracts that are critical to its
operations; (10) potential adverse developments with respect to the Company's
liquidity or business plans; (11) the ability of the Company to retain and
compensate key executives, advisors and other key personnel; (12) the ability
of the Company to attract and retain customers; and (13) any further
deterioration in the macroeconomic of consumer lending services environment or
consumer confidence. Each forward-looking statement speaks only as of the date
on which it is made, and the Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which it is made or to reflect the occurrence of anticipated or unanticipated
events or circumstances, except as required by law.

SOURCE FirstPlus Financial Group, Inc.

FirstPlus Financial Group, Inc., +1-409-363-0695