Union Acceptance Corporation Announces $568 Million Securitization

    INDIANAPOLIS--March 7, 2001--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAC Securitization Corporation ("UACSC"), has priced an offering of approximately $568 million of asset-backed notes. The lead manager of the transaction was Banc of America Securities LLC. Salomon Smith Barney served as a co-manager.
    The UACSC 2001-A Owner Trust is structured as a business trust, which will issue five classes of notes for sale to the public:

                        Weighted                                 
          Principal   Average Life  Coupon     Price      Yield

 A-1      $ 99,000,000    0.28       5.07    100.00000    5.090
 A-2      $141,000,000    1.00       5.03     99.99439    5.089
 A-3      $142,000,000    2.00       5.29     99.98464    5.357
 A-4      $150,270,000    3.30       5.61     99.97662    5.684
  B       $ 35,000,000    3.99       8.25    108.46130    5.938

    The notes will be rated P-1/A-1+ for the A-1 class of notes and Aaa/AAA for the A-2 through B class of notes by Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a division of the McGraw Hill Companies, Inc. The payment of principal and monthly interest on the Class A and Class B notes is guaranteed by an insurance policy provided by MBIA Insurance Corporation, a wholly owned subsidiary of MBIA Inc. . The Servicer is UAC, the Indenture Trustee is BNY Midwest Trust Company, a subsidiary of The Bank of New York, and the Owner Trustee is First Union Trust Company, National Association. The notes are backed by $430 million of prime automobile receivables to be supplemented by additional receivables to be transferred to the trust on or before April 30, 2001.
    Including the UACSC 2001-A Owner Trust, UAC and its affiliates have securitized over $9.6 billion in prime automobile receivables.

    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.