Union Acceptance Corporation Announces Appointment of John M. Eggemeyer as Chairman

    INDIANAPOLIS--Aug. 5, 2002--Union Acceptance Corporation ("UAC") announced today that John M. Eggemeyer has been named chairman of the board and Lee Ervin, who became chief operating officer in September of last year and president in January 2002, has assumed the additional responsibilities of chief executive officer.
    Mike Stout, who has held the position of chairman since February 2001 and chief executive officer since October 2001, will remain an active member of the board of directors and will continue his involvement in the future direction of the company.
    Eggemeyer, an incumbent board member since October 2000 and a significant investor in UAC, has over thirty years of banking and investment banking experience. Currently, he serves as chief executive officer of Castle Creek Capital, LLC and Castle Creek Financial, LLC, which he co-founded in 1995. In addition, he is a director of TCF Financial Corporation and First Community Bancorp.
    "My task as chairman is to continue the initiatives that Mike and Lee have established and provide strategic direction for the continuing progress of the company," said Eggemeyer. "Mike has positioned UAC for the future through his outstanding leadership and I am looking forward to working more closely with Lee and the management team."
    Stout was named UAC chairman and CEO last year to facilitate the restructuring and repositioning of the company. As an outgrowth of that effort, he implemented a six-point plan, including the adoption of a new risk based pricing model and the selection of Lee Ervin as chief operating officer and president.
    "While Mike continues to serve on the board of directors his daily input as an executive will be missed. Mike is a dynamic leader. We value his contributions over the past two years and look forward to his continued guidance as a director," said Ervin.
    Stout's tenure as chairman and CEO was intended to be an interim position to help management focus and redirect the company's strategy. "Mike has significantly contributed to the corporate initiatives that will carry UAC into the future," said Richard Waterfield, Sr., UAC board member and significant investor. "We all wish him continued success as he returns to private investing."
    Additional information about Union Acceptance Corporation and its management team can be obtained at the Company's Web site, www.unionacceptance.com.

    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 5,900 manufacturer-franchised dealerships in 39 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.