AutoFund Servicing, Inc. -AFSR- Stock Drops 84% in 19 Trading Days and Company Gets Stronger

    SAN ANTONIO--Jan. 16, 2002--During the last 19 days of trading AutoFund Servicing, Inc.'s (OTCBB:AFSR) stock has traded for a high of .40 to a low of .06 losing 84% of its value. Yet according to Mr. James Haggard, Chairman of the Board and President, things are looking much better.
    Mr. Haggard further states, "I do not understand public stock as well as I understand running AutoFund, but I am a quick study. AutoFund became public in part, due to a reverse merger. The merger unfortunately came with 2 large shareholders who, in my opinion, would have inhibited our future growth and financial stability of the stock. We now have reason to believe these shareholders have sold their interest in AutoFund and moved on. This sudden sale of their stock, I believe, resulted in the collapse of the stocks integrity. Now with these shareholders out of the picture AutoFund has a better opportunity for its future growth and financial stability of the stock."
    Mr. Haggard continues, "Very few investors know of AutoFund and that has to change. At present, we are in the process of interviewing with several public relations companies. Getting the word out about who AutoFund is has become as important as running it.
    "We are days away from closing two major portfolios with a total value of 96 million dollars. The due diligence for the portfolios are completed, the offers accepted and the lenders in agreement. Acquisitions this size take time and lots of patience. We may have been a bit premature back in September 2001 when we announced the Non-Binding Bid for the 56 million portfolio, but all things come in their own time. An announcement with specifics on the portfolios will follow the closing."
    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 seek 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.