All Pro Auto Mall & Universal Underwriters Acceptance Reach Agreement

    CLEARWATER, Fla.--June 5, 2001--Pinnacle Business Management (Pink Sheets:PCBM), operator of a diverse set of businesses, has announced that its McMurray, PA-based All Pro Auto Mall division (All Pro) has entered into a servicing agreement with Overland Park, KS-based Universal Underwriters Acceptance Corporation (UUAC), a member of the almost 80-year-old Universal Underwriters Group, which in turn is a member of the world-wide Zurich Financial Services Group.
    UUAC already has similar servicing agreements with hundreds of auto dealers serving subprime markets across the continental U.S. The agreement provides All Pro with the financial resources to grow its "buy-here, pay-here" automobile business, while at the same time relieving it of the chore of collecting monthly installment payments from its subprime customers.
    Under the agreement, All Pro will be able to build its locations' retail installment contract portfolios, said Vincent Lo Castro, COO of PCBM and head of the All Pro Auto Mall division. All Pro is eligible to have UUAC accept subprime auto retail installment contracts originated by All Pro and account for the contracts in groups of fifty. The UUAC agreement provides that UUAC will, for eligible contracts, advance a portion of the total value of the vehicle securing each contract, which is usually sufficient to provide All Pro with cashflow to cover the wholesale cost of the vehicle, plus applicable taxes.
    In addition, in cases where the consumer elects to purchase a vehicle service contract on the vehicle, the initial UUAC advance also covers a portion of the wholesale cost of the vehicle service contract, as well as a portion of the ultimate total profit All Pro might realize on the vehicle credit sale.
    The agreement does not involve any exchange or sale of PCBM stock.
    "This transaction creates unprecedented opportunities for Pinnacle Business Management and the All Pro Auto Mall," said Lo Castro. "We started the preliminary negotiations for this agreement at the beginning of the year and working out the details took us down a long road. That journey produced an agreement that will benefit everyone involved, including our investors, employees and customers. We believe this agreement allows us to achieve rapid future growth without having to raise capital through the sale of stock," he added.
    As part of the agreement, Universal will provide All Pro with UUAC's proprietary QuickCalc(R) software to help All Pro personnel to quickly select vehicle inventory that is appropriate to offer the consumer and structure each credit sale transaction.
    Universal's management system generates financial analyses and projections that can help identify trends and opportunities for modeling All Pro's future growth.
    "I'm confident that given All Pro's success to date in managing our portfolio effectively, this agreement and the services provided by UUAC can give us all the support we realistically could need to fund our expansion of the All Pro Auto Mall business," said Jeff Turino, CEO of PCBM.