ATLANTA--(BUSINESS WIRE)--July 18, 1995--Equitable Real Estate Investment Management Inc. announced today it has entered into a letter of intent to sell AMRESCO Inc. (NASDAQ:AMMB) its securitized-mortgage servicing business, representing 22 contracts and $7.5 billion in mortgages.

The contracts, mostly Resolution Trust Corporation-related, have been managed by EQ Services Inc., Equitable Real Estate's mortgage servicing affiliate, which will continue to service $7.5 billion in mortgages from Equitable Real Estate's pension and general account portfolios as well as from other institutional accounts. No sale price was announced. The transaction is expected to close during the fourth quarter.

Rob Adair, president of AMRESCO, said: "The acquisition represents a significant step in the continued expansion of AMRESCO's securitized mortgage servicing business. Upon closing, AMRESCO will be one of the largest commercial real estate mortgage servicers in the country with $13 billion of mortgages being serviced," he said.

Douglas A. Tibbetts, president and chief operating officer of Equitable Real Estate, said Equitable Real Estate is strategically focusing on its core advisory and asset management business, which leads the industry pension assets under management.

"Our strategy to establish a master mortgage servicing business in 1991 helped successfully steer us through the real estate sims urban oasis floor plan downturn of the early 1990s," Tibbetts said. "Now, during the markets recovery, we believe it is important to concentrate on our core business, which has been the backbone of our company for more than two decades and the industry leader. Equitable Real Estate intends to continue to expand our origination, underwriting and mortgage asset management businesses, while maintaining mortgage servicing for our substantial mortgage investment portfolios through the EQ Services operations. We expect to originate more than $1 billion annually for our domestic and foreign clients." he said.

In 1994, Equitable Real Estate a wholly-owned subsidiary of the Equitable Companies (NYSE:EQ) led all pension real estate managers in new equity real estate and mortgage business gains, attracting $1.8 billion.

The company's newest investment product, Value Enhancement Fund I, returned 26.6% during the year. The company currently has $34 billion in assets under management and recently formed a joint venture with Hyperion Capital Management Inc. to manage commercial mortgage backed securities for institutional investors.

Equitable Real Estate's Buckhead Strategic Funds invest primarily in distressed mortgage assets and its Core Mortgage Fund invests primarily in traditional whole loans. The company also manages single client mortgage accounts for institutional clients.

Headquartered in Dallas, AMRESCO is a leading financial services company. The company acquires and provides asset management services for loans of varying quality secured by business and personal assets and commercial real estate properties. Through its AMRESCO Capital Corp. and Holiday Fenoglio Inc. subsidiaries, the company is a leader in the origination, sale and servicing of commercial real estate loans.

CONTACT: Equitable Real Estate Investment Management Inc., New York

Jonathan D. Miller, 212/554-1967


AMRESCO Inc., Dallas

Barry L. Edwards or Thomas J. Andrus, 214/953-7700