Advanta Corp (96638) SEC Filing 10-K Annual report for the fiscal year ending Friday, December 31, 2004

EX-99.1
2
a4814191ex991.txt
ADVANTA CORP. EXHIBIT 99.1

                                                                    Exhibit 99.1

 Advanta Receives Final IRS Approval Regarding Settlement with Bank of America

     SPRING HOUSE, Pa.--(BUSINESS WIRE)--Feb. 3, 2005--Advanta Corp.
(NASDAQ:ADVNB;ADVNA) announced today that the Internal Revenue Service has given
final approval of the settlement of the tax disputes between Advanta Corp. and
FleetBoston Financial Corporation, which was acquired by Bank of America
Corporation (NYSE:BAC) in 2004. The settlement of the tax disputes is part of
Advanta's agreement with Bank of America. As a result of the IRS approval,
Advanta received $63.8 million in cash from Bank of America, representing a
return of the payments that were made to Fleet in the Delaware state court
litigation in early 2004. Consistent with the terms of the settlement, all
outstanding litigation between the two companies is being dismissed. The
settlement results in a net after-tax gain of approximately $61 million and an
increase in book value of approximately $2.45 per share, as previously outlined.
The impact of the settlement, which will be reflected in Advanta's first quarter
2005 results, was not included in the Company's previously announced 2005
guidance estimates.

     Advanta focuses on the small business market and related community,
providing funding and support to the nation's small businesses through
innovative products and services. Using its direct marketing and information
based expertise, Advanta identifies potential customers and provides a high
level of service tailored to the unique needs of small businesses. Advanta is
one of the nation's largest issuers (through Advanta Bank Corp.) of MasterCard
business credit cards to small businesses. Since 1951, Advanta has pioneered
many of the marketing techniques common in the financial services industry
today, including remote lending and direct mail, affinity and relationship
marketing. Learn more about Advanta at www.advanta.com.


     CONTACT: Advanta Corp.
              Chris Curran
              Vice President Investor Relations
              215-444-5335
              ccurran@advanta.com
                or
              Jennifer Lyons
              Communications
              215-444-5073
              AdvantaCommunications@advanta.com