AutoFund Servicing, Inc. -AFSR- Completes Due Diligence for Acquisition of a $56 Million Portfolio

    SAN ANTONIO, Texas--Oct. 24, 2001--AutoFund Servicing, Inc. (OTCBB:AFSR) Announces that The Board of Directors has completed its due diligence for the acquisition of a $56 million portfolio and is in negotiations with the principals.
    According to Mr. James Haggard, Chairman of the Board and President of AutoFund Servicing, Inc., "The portfolio has approximately 12,000 automobile accounts from around the nation, with a significant percent still having possession of the collateral. After completing our due diligence it is apparent the portfolio will enhance our value significantly. We are preparing an offer for the portfolio of cash and stock. It is anticipated that we could have it finalized within a couple of weeks."
    AUTOFUND SERVICING, INC. has received an effective letter from the SEC on their SB-2 filing. The offering is for a total of 1,000,000 shares of 10% convertible preferred stock at $1.64 per share through a PROSPECTUS ONLY. The preferred shares will convert to (2) two shares of common stock after 12 months. The shares offered in the prospectus can only be sold by the President of the company to certain qualified investors. For more information contact James D. Haggard, President at

        3201 Cherry Ridge Dr., Suite 314 San Antonio, TX 78230
           210/979-0840 extension 401, fax 210/979-0687

    ABOUT THE COMPANY: AutoFund Servicing, Inc is a third party collection and recovery service provider to auto loan finance companies. Our clients include banks, buy here pay here companies and auto finance companies that have bad debt accounts. These auto loan accounts have, for the most part, been written off or charged off by the company who provided the vehicle loan to the customer, and the debt is still owed by a customer whose vehicle may or may not have been repossessed. AutoFund Servicing aggressively seeks accounts from these companies to process for recovery.
    AutoFund Servicing purchases large numbers of these accounts, at pennies on the dollar, from companies that wish to liquidate certain delinquent accounts from their portfolio. Then AutoFund, through its large professional staff, attempts to collect the moneys owed on these accounts. It also provides data storage services for clients and generates reports from this data for its clients.

    Certain statements about the Company's future expectations, including future revenues, earnings and transactions, as well as all other statements in the press release other than historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results and other corporate developments could differ materially from that which has been anticipated in such statements.