Union Acceptance Corporation Appoints New Director

    INDIANAPOLIS--Feb. 20, 2002--Union Acceptance Corporation ("UAC") today announced the appointment of Lee Ervin to its Board of Directors.
    Mr. Ervin joined UAC in September 2001 as Chief Operating Officer and was promoted to President in January 2002.
    Mike Stout, Chairman of the Board and CEO of Union Acceptance Corporation stated, "Lee has been an integral part of the restructuring and repositioning of UAC and the Board of Directors and I are extremely confident in his ability to lead the Company in the continued pursuit of our objectives. We are very pleased to welcome him to the board."
    Mr. Ervin joined UAC from Fairbanks Capital Corporation, a servicer and purchaser of residential single-family mortgage loans where he served as Executive Vice President - Servicing Operations. He participated as a member of the Freddie Mac Advisory Board, 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.
    Prior to his 32-year career in the financial services industry, Mr. Ervin served three tours of duty with the Navy in Viet Nam. He attended Carson Newman College in Jefferson City, Tennessee.
    For additional information on Union Acceptance Corporation, please go the Company's web site, www.unionacceptance.com.
    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 5,700 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.