AutoCorp Announces New Credit Union Strategy; $2 Million Credit Line

DALLAS, May 13 AutoCorp Financial Services, Inc. (AFS) a wholly owned subsidiary of AutoCorp Equities, Inc. (OTC Bulletin Board: ACOR - News) has appointed James W. Parmley as its new President and Board Director. Starting his career with GMAC, Mr. Parmley worked in various positions before becoming the owner and general manager of Murphy Oldsmobile-Cadillac. When the dealership was sold he took the position of Vice President over consumer lending with Republic Bank and then on to the Bank of Texas to oversee their installment loan division. In 1994, Mr. Parmley formed National Loan Star Acceptance, a company that originated and serviced over $50 million in non-prime auto loans for major financial institutions like Ft. Worth National Bank, Legacy Bank and Unity Bank. As president of National Loan Star, Mr. Parmley forged new relationships with groups of regional credit unions and helped them to create a unique loan- purchasing participation strategy. During his last few years at Loan Star, he generated in excess of $25 million in credit union participation auto loans. Mr. Parmley brings his system and several million dollars in portfolio servicing business to AutoCorp. He believes his proven Credit Union participation strategy will vastly increase the company's current loan originations, portfolio purchases and loan servicing business.

AFS is also announcing it has recently secured a $2 million line of credit with SeaWest Financial of Paramount, California. AFS owns and services automobile retail installment loan portfolios. The credit line will allow to the Company to substantially to expand its finance receivable holdings and increase sales for its vehicle re-marketing division.