Union Acceptance Corporation Announces $300 Million Securitization

    INDIANAPOLIS--March 11, 2002--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAC Securitization Corporation ("UACSC"), has priced an offering of $300 million of asset-backed notes. The lead manager of the transaction was Wachovia Securities. Bank of America Securities served as a co-manager.
    "Average credit bureau scores for the new business included in this securitization came in at over 700," stated Rick Brown, Chief Financial Officer. "In addition, analysis based on our pricing model suggests that our risk-adjusted return on this new business will be above our minimum target of 1.5% after-tax return on assets. Given the turbulent competitive environment including products such as 0% financing, we very pleased with these results."
    The UACSC 2002-A Owner Trust is structured as a business trust, which will issue five classes of notes for sale to the public:

                   Weighted
                    Average
       Principal     Life      Coupon     Price        Yield
A-1  $ 68,000,000    0.17      1.880%   100.00000      1.880%
A-2  $ 83,000,000    0.90      2.750%    99.99637      2.770%
A-3  $ 65,000,000    2.00      3.860%    99.98154      3.901%
A-4  $ 66,000,000    3.25      4.590%    99.97985      4.641%
 B   $ 18,000,000    3.81      5.000%    99.99807      5.053%

    The notes will be rated Prime-1/A-1+ for the A-1 class of notes and Aaa/AAA for the A-2 through B class of notes by Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a division of the McGraw Hill Companies, Inc. The payment of principal and monthly interest on the Class A and Class B notes will be guaranteed by an insurance policy provided by MBIA Insurance Corporation, a wholly owned subsidiary of MBIA Inc. . The Servicer is UAC, the Indenture Trustee is BNY Midwest Trust Company, a subsidiary of The Bank of New York, and the Owner Trustee is First Union Trust Company, National Association. The notes are backed by approximately $300 million of prime automobile receivables.
    The weighted average contract rate of the receivables is 11.02%. Including the UACSC 2002-A Owner Trust, UAC and its affiliates have securitized over $10.4 billion in prime automobile receivables.
    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.

    Forward Looking Information

    This news release contains forward-looking statements regarding matters such as profitability, receivable acquisitions, receivable pricing, delinquency and credit loss trends and estimates and other issues. Readers are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, the difficulty inherent in predicting changes in delinquency and credit loss rates, changes in acquisition volume, limited availability of financing and other capital resources, general economic conditions that affect consumer loan performance and consumer borrowing practices and other important factors detailed in the Company's annual report on Form 10-K for the fiscal year ended June 30, 2001 which was filed with the Securities and Exchange Commission.