AutoBond Successfully Offers $10.0 Million of Preferred Stock

20 February 1998

    AUSTIN, Texas, Feb. 20 -- AutoBond Acceptance Corporation
("AutoBond"), listed on the Nasdaq under the symbol "ABND", is
pleased to report the successful public offering of $10.0 million of
cumulative preferred stock listed on Amex under the symbol "ABD.Pr.A".  This
financing enhances AutoBond's liquidity, strengthens operating flexibility and
provides for continued contract acquisition growth.  Tejas Securities Group,
Inc. performed as lead manager of the offering.
    AutoBond currently has 6,531,311 shares outstanding.  AutoBond is a
specialty consumer finance company engaged in underwriting, acquiring,
servicing and securitizing retail installment contracts originated primarily
by franchised automobile dealers in connection with the sale of used and, to a
lesser extent, new vehicles to selected consumers with limited access to
traditional sources of credit.  AutoBond is located in Austin, Texas and
acquires contracts nationwide from dealers in approximately 40 states.
    This is not an offer to buy or sell securities or assets of any kind.

SOURCE  AutoBond Acceptance Corporation