AutoFund Servicing Inc. Completes Closing on 1 of 3 New Portfolios Valued at $30 Million and Totaling Over $100 Million Dollars

    SAN ANTONIO--Jan. 22, 2002--AutoFund Servicing Inc. (OTCBB:AFSR) announces that the Board of Directors has completed the closure and has taken possession of the first of three portfolios totaling more than $100 million dollars.
    According to James Haggard, chairman of the board and president of AutoFund Servicing Inc., "The first portfolio with a value of $30 million dollars is closed and in our possession. This portfolio has approximately 5,200 automobile accounts from around the nation, with a significant percent still having possession of the collateral.
    "We estimate the useful life of this portfolio to be 24 months. The portfolio will begin generating revenue in about 90 days and should produce a net (after loan expense) income the first 12 months in excess of $360,000. The net income generated the second 12 months well be greater due to the loan structure."
    Haggard continues, "Baring any unknowns we expect the two other portfolios to be closed and in our possession within a week. The $100 million dollars in portfolios will give us a jump start for the year."
    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.