Union Acceptance Corporation Announces $330 Million Securitization

    INDIANAPOLIS--Sept. 24, 2001--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAC Securitization Corporation ("UACSC"), has priced an offering of $330 million of asset-backed notes. The lead manager of the transaction was Banc of America Securities. First Union Securities served as a co-manager.
    The UACSC 2001-C Owner Trust is structured as a business trust, which will issue five classes of notes for sale to the public:

                      Weighted 
                       Average
         Principal      Life      Coupon        Price       Yield
A-1   $  62,105,000     0.22      2.585%      100.00000     2.585%
A-2   $  89,627,000     0.99      3.030%       99.99526     3.054%
A-3   $  67,659,000     1.99      3.810%       99.99859     3.841%
A-4   $  90,809,000     3.26      4.390%       99.98289     4.436%
 B    $  19,800,000     3.94      4.730%       99.96746     4.786%

    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 will be 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 approximately $270 million of prime automobile receivables to be supplemented by additional receivables to be transferred to the trust on or before November 15, 2001. The notes are to be issued on or about September 28, 2001.
    Including the UACSC 2001-C Owner Trust, UAC and its affiliates have securitized over $10 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 purchasing and servicing prime automobile retail installment sales contracts. These contracts are originated by dealerships affiliated with major domestic and foreign manufacturers, nationally recognized rental car outlets, and used car superstores. UAC focuses on acquiring receivables related to late model used and, to a lesser extent, new automobiles purchased by customers who exhibit favorable credit profiles. 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.