<PAGE> 1
Exhibit 99.1
FOR IMMEDIATE RELEASE
INVESTOR CONTACTS PRESS CONTACTS
Chase: John Borden Chase: Charlotte Gilbert-Biro
212-270-7318 212-270-7455
Advanta: David Weinstock Advanta: Catherine Reid
215-444-5335 215-444-5073
CHASE MANHATTAN MORTGAGE CORPORATION TO ACQUIRE ADVANTA'S MORTGAGE BUSINESS
Edison, N.J., January 8, 2000 - Chase Manhattan Mortgage Corporation, a
subsidiary of J.P. Morgan Chase & Co. (NYSE: JPM) has signed a definitive
agreement to acquire the mortgage business of Advanta Corp. (NASDAQ: ADVNB;
ADVNA). The acquisition includes a $15.8 billion mortgage loan servicing and
sub-servicing portfolio with over 200,000 customers and other net assets.
Advanta also has an annual mortgage origination capability in excess of $1
billion.
The proposed acquisition would increase Chase's origination activity in the
non-prime mortgage business and enhance Chase's position as a leading originator
of non-prime mortgages in the country. The Advanta non-prime servicing portfolio
is one of the largest in the nation and includes Chase's non-prime portfolio,
which Advanta has been subservicing.
The acquisition is subject to the approval of Advanta's shareholders and certain
regulatory filings and approvals. The transaction is expected to close in the
first quarter of 2001. Chase and Advanta will work together to ensure a seamless
transition for Advanta customers.
"Extending mortgage credit to traditionally under-served groups using sound
principles and practices for granting and securing credit is the foundation of
fair and prudent lending," said Luke Hayden, Executive Vice President, J.P.
Morgan Chase & Co. "This acquisition will expand Chase's platform, enabling us
to better serve borrowers who do not meet traditional credit standards."
Chase Manhattan Mortgage Corporation, with headquarters in Edison, New Jersey,
is currently the nation's largest residential mortgage lender and second largest
servicer. In addition to non-prime, the Chase home finance businesses include
traditional first mortgage, home equity and manufactured housing loans.
"This strategic transaction is an excellent outcome for our shareholders,
customers and employees," said Dennis Alter, Chairman and Chief Executive
Officer of Advanta. "This is a cash transaction pursuant to which we expect to
receive a price in excess of book value. The sale will monetize the value of our
mortgage business and provide all of the opportunities and resources of a
respected, global organization to our employees and customers. It also will
enable Advanta to further concentrate on the small business market, primarily
through its
<PAGE> 2
profitable credit card business, already one of the nation's largest issuers of
Master Card business credit cards to small businesses."
Advanta has a national retail and wholesale presence, as well as phone sales
units and servicing sites in San Diego and suburban Philadelphia. Advanta has
approximately 1800 employees working in its mortgage business.
Chase Manhattan Mortgage Corporation is a subsidiary of J.P. Morgan Chase & Co.
(NYSE: JPM, www.jpmorganchase.com), which is a premier global financial services
firm with assets in excess of $705 billion and operations in over 60 countries.
The firm is a leader in investment banking, asset management, private equity,
consumer banking, private banking, e-finance, and custody and processing
services. Headquartered in New York, J.P. Morgan Chase serves 32 million
consumer customers and over 5,000 corporate, institutional, and government
clients.
Advanta has been providing financial services to consumers and small businesses
since 1951. Advanta leverages its first-class direct marketing and
information-based expertise to develop state-of-the-art data warehousing and
statistical modeling tools that identify potential customers and new target
markets. It also offers its customers and business partners a broad range of
self-service financial solutions and other services on the Internet at
www.advanta.com
This Press Release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. The most significant among these risks and
uncertainties are: (1) the timing and closing of the transaction described in
this Press Release; and (2) the approval of the transaction by regulatory
agencies and Advanta's shareholders.
