Western Financial Group Announces Closing of First Preferred Share, Series 4 Offering



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    HIGH RIVER, AB, Dec. 28 /CNW/ - Western Financial Group Inc. ("Western
Financial Group" or the "Company") is pleased to announce that it has closed
the maximum amount of its offering (being 200,000) of first preferred shares,
series four (the "Preferred Shares") for gross proceeds of $20,000,000. Net
proceeds from the offering will be used to fund the Company's ongoing broker
acquisition program, repay indebtedness and for general corporate purposes.
    The Preferred Shares were priced at $100 per share and will pay a
dividend of 6.75% per annum, payable semi-annually if, as and when declared by
the Board of Directors. The Preferred Shares will be convertible into the
Company's common shares at any time at the holder's option at a price of $6.90
per common share (the "Conversion Price"). The Preferred Shares will be
redeemable by the Company at its option only on or after January 1, 2011.
Redemption from January 1, 2011 and prior to January 1, 2013 will be at a
redemption price equal to $100 per share plus all accrued or declared and
unpaid dividends, provided that the volume weighted average trading price of
the Company's common shares for at least 20 trading days in any consecutive
30 day period ending not more than five trading days prior to the date on
which a notice of redemption is given exceeds 135% of the Conversion Price.
After January 1, 2013, the Preferred Shares will be redeemable at the option
of the Company at any time at a redemption price equal to $100 per share plus
all accrued or declared and unpaid dividends. If not redeemed, commencing
June 1, 2013, the Preferred Shares will pay semi-annually a cumulative
dividend if, as and when declared by the Board of Directors, at a rate per
annum calculated as at June 1, 2013 and reset on each anniversary of such date
(the "Anniversary Date") in an amount equal to 3.5% above the five year
Government of Canada bond rate as quoted 10 days before the Anniversary Date.
    CIBC World Markets Inc., Desjardins Securities Inc., TD Securities Inc.,
Jennings Capital Inc. and Acumen Capital Finance Partners Limited acted as the
Company's agents in connection with the offering.

    Western Financial Group is a leader in providing insurance, financial
services and banking services in over 80 communities, to more than
400,000 individuals and businesses in Western Canada through its WFG Agency
Network locations, its affiliated insurance brokers, Western Life Assurance
Company and Bank West.
    The Preferred Shares are traded on the Toronto Stock Exchange under the
symbol "WES.PR.B" and the common shares of the Company are traded on the
Toronto Stock Exchange under the symbol "WES".

    This press release is not for distribution to any United States news
services or otherwise in the United States.





For further information:

For further information: Arlene Beggs, Assistant to the President,
Western Financial Group, (403) 652-2663, info@westernfinancialgroup.net

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Western Financial Group

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