United PanAm Financial Corp. Announces Engagement of New Auditor

NEWPORT BEACH, Calif.--Oct. 22, 2004--United PanAm Financial Corp., a California corporation (the "Company") , announced today that effective Oct. 20, 2004, the Company's audit committee has engaged Grobstein, Horwath & Company LLP as the Company's new independent accountant. Grobstein, Horwath & Company LLP is one of the largest auditing firms in Southern California. Grobstein, Horwath & Company LLP has experience auditing public companies and companies in the financial services industry.

The Company had previously announced the engagement of Stonefield Josephson Inc. as the Company's newly appointed independent accountants, replacing KPMG LLP, the Company's former accountants. Based upon discussions with Stonefield Josephson on Oct. 1, 20049, 2004, the Company has determined that it will not proceed with the previously announced engagement of Stonefield Josephson as the Company's independent accountants. The decision that the Company would not proceed with the engagement was approved by the Company's audit committee based upon discussions with Stonefield Josephson regarding their capacity to act as the Company's auditors pursuant to the terms of the engagement letter dated Oct. 4, 2004.

The Company, which is a specialty finance company, originates and acquires for investment retail automobile installment sales contracts. The Company conducts its automobile finance business through United Auto Credit Corp., which purchases and holds for investment nonprime automobile installment sales contracts, or automobile contracts, originated by independent and franchised dealers of used automobiles. United Auto Credit Corp. has 78 branch offices in 26 states.

Grobstein, Horwath & Company LLP, a full-service accounting and consulting firm, has been providing professional services to clients for over 35 years. The firm's SEC Reporting Practice renders attestation, tax, and consulting services to domestic and international SEC reporting companies. As a Horwath International firm, they belong to one of the largest global professional service organizations in the world. Today, their international network of business advisors can serve clients from 400 offices in 90 countries.

Any statements set forth above that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act ("SLRA") of 1995, including statements concerning the Company's strategies, plans, objectives and intentions. Such statements are subject to a variety of estimates, risks and uncertainties, known and unknown, which may cause the company's actual results to differ materially from those anticipated in such forward-looking statements. Potential risks and uncertainties are detailed from time to time in the Company's filings with the United States Securities and Exchange Commission.