Union Acceptance Corporation Announces Appointment of New Chairman

    INDIANAPOLIS--March 2, 2001--Union Acceptance Corporation ("UAC") today announced that Michael G. Stout, an incumbent board member, has been named Chairman of its Board of Directors and has joined UAC's management team on a full-time basis.
    Mr. Stout is an investor, consultant and investment manager, with over 17 years of experience in investment banking, most recently with Donaldson, Lufkin and Jenrette (now Credit Suisse First Boston), where he served as Managing Director supervising the warehousing, structured finance, securitization and servicing of residential mortgages. Mr. Stout also serves as a director of Coastal Credit, LLC, a company involved in the auto finance industry.
    "Mike has been an outstanding addition to our board and we are delighted to add him to the management team," said John M. Stainbrook, UAC's Chief Executive Officer. "He brings extensive experience in the investment banking field as well as the consumer auto finance industry. We look forward to working together on the challenges that lie ahead."
    Mr. Stout succeeds Jerry D. Von Deylen who has served as the Company's Chairman since its 1995 IPO and spin-off from its former parent, Union Federal Bank of Indianapolis. Mr. Von Deylen, who is President of Union Federal Bank of Indianapolis, will continue to serve UAC as a member of the Board of Directors. Looking toward retirement, Mr. Von Deylen is seeking to curtail his daily management responsibilities. He will, however, continue to assist UAC management on an ongoing consulting basis.

    Corporate Description

    UAC is one of the nation's largest independent, indirect automobile finance companies. The Company's primary business is acquiring, securitizing and servicing prime retail installment sales contracts. These contracts are originated by dealerships affiliated with major domestic and foreign automobile manufacturers. The Company is focused on the upper-end of the credit quality spectrum. Union Acceptance Corporation commenced business in 1986 and currently acquires receivables from over 5,400 manufacturer-franchised dealerships in 40 states. By using state-of-the-art technology in a highly centralized underwriting and servicing environment, Union Acceptance Corporation enjoys one of the lowest cost operating structures in the independent prime automobile finance industry.