Smart Choice Automotive Group 256% Increase in Second Quarter Earnings

18 December 2000

    TITUSVILLE, Fla., Dec. 15 Smart Choice Automotive Group,
Inc. (OTC Bulletin Board: SCHA), which sells and finances used cars in Florida
and Texas, today announced higher sales and earnings for the second quarter
and first half of Fiscal 2001.
    For the three months ended October 31, 2000, sales of used cars increased
200% to $50.5 million, compared with sales of $16.8 million in the second
quarter of the previous fiscal year. Interest income rose 237% to
$9.5 million, versus $2.8 million in the quarter ended October 31, 1999.  Net
income increased 256% to $833,000, or $0.08 per diluted share, in the most
recent quarter, compared with $234,000, or $0.03 per diluted share, in the
second quarter of FY2000. Diluted earnings per share were calculated on
9,814,000 weighted average diluted shares outstanding for the quarter ended
October 31, 2000, versus 7,355,000 diluted shares outstanding in the
year-earlier quarter.
    Sales of used cars increased 160% to $94.3 million in the six months ended
October 31, 2000, versus sales of $36.3 million for the six months ended
October 31, 1999.  Interest income increased 232% to $18.9 million in the
first half of FY2001, compared with $5.7 million in the first half of FY2000.
Net income for the first half of FY2001 totaled $2,235,000, or $0.23 per
diluted share, which represented a 408% increase when compared with net income
of $440,000, or $0.06 per diluted share, in the corresponding period of the
previous fiscal year.  Diluted earnings per share were calculated on
9,794,000 weighted average diluted shares outstanding for the six months ended
October 31, 2000, versus 7,355,000 diluted shares outstanding in the year
earlier period.
    "The significant gains in revenues and earnings during the second quarter
and first half of Fiscal 2001 were in line with management's expectations,"
commented Ed Ernst, Chief Executive Officer of Smart Choice Automotive Group,
Inc.  "Our focus has been upon improving operating efficiencies and portfolio
performance at our automotive sales/finance subsidiaries, and I am pleased to
report that our Texas-based PAACO subsidiary turned in an outstanding
performance during the most recent quarter.  PAACO also opened its third used
car dealership in Houston earlier this year, further solidifying its position
as the largest retailer of used cars to Latino customers in that market.  Our
Smart Choice subsidiary in Florida continues to pursue an optimum relationship
between sales and portfolio performance which will allow it to achieve
management's long-term objectives as a provider of quality transportation to
subprime customers in that State."
    "Despite predictions of a slowdown in the national economy in coming
months, we are optimistic regarding the balance of our fiscal year," continued
Ernst.  "The used car industry typically performs well during sluggish
economic periods, and we see no reason why this should change in the current
business cycle."
    
                     SMART CHOICE AUTOMOTIVE GROUP, INC.
                               AND SUBSIDIARIES

                        SELECTED FINANCIAL HIGHLIGHTS
                   (In thousands except per share amounts)
                                 (unaudited)

                                                       Three Months Ended
                                                   October 31     October 31
                                                      2000           1999

    Sales of used cars                              $ 50,515       $ 16,815
    Less:  Cost of used cars sold                     31,526         10,243
           Provision for credit losses                11,446          3,021
                                                       7,543          3,551
    Interest income
           Interest income                             9,525          2,828
           Portfolio interest expense                  4,539          1,469
                                                       4,986          1,359

    Income before operating expenses                  12,529          4,910

    Operating expenses
           Selling, general and administrative        10,841          4,445
           Depreciation and amortization                 395             73
           Other expense (income)                        (63)            --
                                                      11,173          4,518

    Income before income taxes                         1,356            392

    Income tax expense                                   523            158

    Net income                                         $ 833          $ 234

    Net income per common share
           Diluted                                     $0.08          $0.03

    Weighted average shares outstanding
           Diluted                                     9,814          7,355


                     SMART CHOICE AUTOMOTIVE GROUP, INC.
                               AND SUBSIDIARIES

                        SELECTED FINANCIAL HIGHLIGHTS
                   (In thousands except per share amounts)
                                 (unaudited)

                                                       Six Months Ended
                                                   October 31     October 31
                                                      2000           1999

    Sales of used cars                              $ 94,304       $ 36,322
    Less:  Cost of used cars sold                     57,714         23,203
           Provision for credit losses                22,038          5,654
                                                      14,552          7,465
    Interest income
           Interest income                            18,898          5,699
           Portfolio interest expense                  8,737          2,820
                                                      10,161          2,879

    Income before operating expenses                  24,713         10,344

    Operating expenses
           Selling, general and administrative        20,607          9,460
           Depreciation and amortization                 774            165
           Other expense (income)                       (256)             -
                                                      21,125          9,625

    Income before income taxes                         3,588            719

    Income tax expense                                 1,353            279

    Net income                                        $2,235          $ 440

    Net income per common share
           Diluted                                    $ 0.23          $0.06

    Weighted average shares outstanding
           Diluted                                     9,794          7,355


                     SMART CHOICE AUTOMOTIVE GROUP, INC.
                               AND SUBSIDIARIES

                        SELECTED FINANCIAL HIGHLIGHTS

                       CONSOLIDATED BALANCE SHEET DATA
                     (In thousands except per share data)

                                                  October 31,     April 30,
                                                     2000           2000
                                                  (unaudited)

    Cash and cash equivalents                      $     588      $   1,883

    Finance receivables, net                       $ 146,954      $ 132,855

    Total Assets                                   $ 195,449      $ 178,965

    Total Liabilities                              $ 176,586      $ 162,337

    Total Shareholders' Equity                     $  18,330      $  16,095