Union Acceptance Corporation Announces Promotion of New President

    INDIANAPOLIS--Jan. 7, 2002--Union Acceptance Corporation ("UAC") today announced that Lee Ervin has been promoted to President, adding to his current responsibilities as Chief Operating Officer. Mike Stout will continue to serve as Chairman of the Board of Directors and Chief Executive Officer.
    Mr. Ervin joined UAC in September 2001 as Chief Operating Officer having responsibility for all aspects of the Company's Collection, Operations and Servicing, Remarketing, and Legal Departments. In his new role as President, he will now be responsible for all daily corporate functions.
    "Lee is an extraordinary talent with 32 years of experience in the financial services industry. His background in both the auto and mortgage industries combined with his strength and experience in information technology, software development, and portfolio servicing are the ideal credentials for his new role with UAC," stated Mike Stout, Chairman of the Board of Directors. "Lee has successfully implemented several critical technological enhancements and has spearheaded the operational excellence initiative, the expense reduction plan and the fee income project. Under Lee's leadership, we will focus on our primary goals for 2002 of enhanced profitability and reduced volatility of earnings."
    Mr. Ervin joined 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. Mr. Ervin received his B.A. from Carson Newman College in Jefferson City, Tennessee and has participated as a member of the Freddie Mac Advisory Board. He has also been active on the Fannie Mae Default Advisory Board, the Mortgage Bankers Association Default Subcommittee, the US Foreclosure Network Advisory Board, and the Editorial Advisory Board for Western Union's Professional Collectors Magazine. Mr. Ervin has also served as Director of Southeastern Pennsylvania International Collectors Association, and President of the Richmond Virginia Credit Executives Association and the Memphis Credit Executives Association.
    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 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.