First American Financial announces the formation of First American Capital Management, Inc.

October 2, 1996, SANTA ANA, CALIFORNIA

The First American Financial Corporation (NYSE: FAF) announced today the formation of a new wholly owned subsidiary, First American Capital Management, Inc., an SEC-registered investment firm with its headquarters in Newport Beach, California.

The new company evolved from the investment division of First American Trust Company, a Southern California-based subsidiary which specializes in personal, employee benefit and real estate-related trusts. Capital Management has managed assets through the Trust Company's investment division for over 35 years. Capital Management's investment management staff is made up of former portfolio managers of the Trust Company's investment division.

According to William C. Conrad, president and chief executive officer, Capital Management was formed to manage a family of proprietary mutual funds, called the First Choice Funds, in addition to continuing and expanding its individual investment management activities. "Our clients wanted to know who was managing their mutual fund money," Conrad said. "Now they can be sure." Service providers for the First Choice Funds include BISYS Fund Services as administrator and distributor, Baker & McKenzie as legal counsel, and Price Waterhouse, LLP, as the independent auditors.

The first offerings, which will be primarily marketed to institutional clients including the Trust Company and other banks, are two money market mutual funds. The First Choice U.S. Treasury Reserve Fund is one of a few in the nation that invests solely in Treasury securities, rather than a mix of Treasury and agency securities. The First Choice Cash Reserve Fund invests in high-quality, short-term obligations that include U.S. government securities, bank securities and commercial paper with A1 and P1 ratings by Moody's.

"The Treasury Reserve Fund maintains the high level of safety which government-backed funds produce," Conrad said. "The Cash Reserve Fund is designed to appeal to clients who want to realize a higher yield than that offered by the U.S. Treasury Reserve Fund."

According to Conrad, the funds will be expanded in the future to include equity, fixed income and balanced mutual funds portfolios. For more complete information about the funds, including charges and expenses, contact BISYS at 1-888-FIRST-16 for a prospectus. Read it carefully before investing or sending money.

Shares of the funds are not deposits of, or guaranteed by, any bank or its affiliates, nor are they federally insured by the FDIC. Investments in the funds involve investment risks, including the possible loss of principal. An investment in shares of the funds is neither insured nor guaranteed by the U.S. Government. Yields will fluctuate, and there can be no assurance that the funds will be able to maintain a stable net asset value of $1.00.

The First American Financial Corporation, based in Santa Ana, California, is the nation's leading provider of real estate-related financial and informational services. The corporation's subsidiaries include First American Title Insurance Company, a national and international title insurer, First American Real Estate Information Services, Inc., which offers tax monitoring, credit reporting, flood certification, mortgage loan servicing systems and property information services nationally, and First American Home Buyers Protection Corporation, a home warranty company. The corporation also operates First American Trust Company and First Security Thrift Company in Southern California. First American Financial has more than 10,000 employees in over 400 branch offices in the United States and abroad. Information about the company's subsidiaries and an archive of its press releases can be found at on the Internet.