Union Acceptance Corporation Publishes Letter to Shareholders

    INDIANAPOLIS--April 19, 2002--Union Acceptance Corporation ("UAC") today announced that its Chairman's Letter to Shareholders, which will also accompany the Company's annual report, has been published and is available on the Company's web site www.unionacceptance.com.
    The Letter to Shareholders describes the six strategic initiatives the Company implemented in 2001 and the implications of these initiatives for 2002 and beyond. These initiatives include: the implementation of risk-based pricing, the raising of additional equity capital, the application of UAC's pricing methodology to the retained interest asset, an operational review of the collections area, a comprehensive review of company efficiency, and the product expansion into other auto-related financial services. The letter also describes management's expectations regarding non-interest income business lines and targeted returns.
    "It is my intention, through this letter, to inform shareholders as I would like to be informed if our roles were reversed," commented Mike Stout, Chairman of the Board and CEO. "Given the extensive restructuring and repositioning process that UAC has gone through over the past few quarters, I believe it is particularly important for us to communicate candidly with our shareholders in a timely manner. We are well on our way to accomplishing the objectives we have outlined over the past year and we believe it is important for shareholders to be well-informed in this regard."

    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 5,800 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.