Union Acceptance Corporation Announces Lee Ervin as Chief Operating Officer

    INDIANAPOLIS--Sept. 10, 2001--Union Acceptance Corporation ("UAC") today announced that Lee Ervin has been named Chief Operating Officer of the Company, reporting directly to John Stainbrook, UAC's President and Chief Executive Officer. The creation of this new position is an effort to better distribute responsibilities among UAC's executive management team, allowing each executive to focus on their respective functions as well as corporate strategies and goals.
    Mr. Ervin will be responsible for all aspects of the Company's Collection, Operations and Servicing, Remarketing, and Legal Departments. He will also play a key role in overall strategic planning.
    "Our ability to attract an executive of Lee's caliber is a testament to the franchise we are building here and the opportunities that exist for UAC in this industry," stated Mike Stout, Chairman of the Board of Directors. "Lee has an outstanding background as evidenced by his previous responsibilities and his success in building and enhancing substantial portfolios. UAC will certainly benefit from his years of experience in the financial services industry."
    Mr. Ervin joins UAC from Fairbanks Capital Corporation, a leading servicer and purchaser of residential single-family mortgage loans, where he served as Executive Vice President - Servicing Operations. In this position, Mr. Ervin was responsible for overall management of servicing and loss mitigation operations. He also directed numerous acquisitions which contributed to an increase in the servicing portfolio from $900 million to over $20 billion in 3 years.
    Mr. Ervin joined Fairbanks Capital Corporation from Calmco, Inc., a financial services company and wholly owned subsidiary of Donaldson Lufkin & Jenrette (now Credit Suisse First Boston). At Calmco, Mr. Ervin held the position of Senior Vice President of Collections, Loss Mitigation & MIS. While at this post, Mr. Ervin managed a $3.5 billion loan portfolio and was influential in the implementation of several leading edge collection information systems which contributed to a significant reduction in delinquency.
    Mr. Ervin received his B.A. from Carson Newman College in Jefferson City, Tennessee. He is a participating member of the Freddie Mac Advisory Board and is active on the Editorial Advisory Board for Western Union's Professional Collectors Magazine.
    Additional information on Union Acceptance Corporation and its management team can be obtained at the Company's web site, www.unionacceptance.com.

    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 5,600 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.