White River Capital Announces Completion of Acquisition of Coastal Credit LLC

INDIANAPOLIS--Sept. 6, 2005--White River Capital, Inc. (Pink Sheets:WRVC) today announced that on Wednesday, August 31, 2005, it completed its previously announced acquisition of Coastal Credit LLC ("Coastal Credit"), a subprime automobile finance company based in Virginia Beach, Virginia.

Pursuant to a purchase agreement, dated March 9, 2005, among White River Capital, Inc. ("White River"), Coastal Credit and the members of Coastal Credit, the aggregate purchase price for the acquisition was $50 million. $45 million was paid at closing and $5 million will be held back until March 31, 2006 and payable with interest at the rate of 10% per annum.

Upon completion of the acquisition, Coastal Credit became a wholly owned subsidiary of White River. The shareholders of Union Acceptance Corporation (now Union Acceptance Company, LLC) ("UAC"), who became the shareholders of White River upon completion of a share exchange on August 9, 2005, approved the transaction at a special meeting of shareholders held on August 9, 2005.

White River funded the $45 million purchase price due at closing with a portion of the approximately $33.1 million in net proceeds it received in its $35 million subscription offering of common stock and with $14.85 million in net proceeds it received from the private placement of a $15 million secured note with a third party accredited investor. In the subscription offering, White River issued 3,500,000 shares at a price of $10.00 per share to former shareholders of UAC who chose to subscribe in the offering and to certain standby investors. The subscription offering and the note placement also closed on August 31, 2005.

On August 23, 2005, Coastal Credit placed $7.7 million in subordinated debentures with private investors. These debentures bear interest at 12% per annum and mature August 31, 2008. Effective August 31, 2005, Coastal Credit amended its principal credit facility with its principal lending institution to extend the facility to December 31, 2009 and provide for an increase in the total commitment from $80 million to $100 million, effective July 2006. The facility bears interest at a variable rate based on LIBOR.

APPOINTMENT OF DIRECTORS

White River has appointed William E. McKnight and John W. Rose as directors of White River, effective as of August 31, 2005, with the completion of the purchase of Coastal Credit.

William E. McKnight is currently the President of Coastal Credit, which he established in 1987. He will continue in that position following the acquisition.

John W. Rose has served on Coastal Credit's board of managers since 1998. Mr. Rose has been the President of McAllen Capital Partners, Inc., an investment management firm, since 1991. He is a principal at Alpha Capital Partners, Ltd. a private equity investment firm. He has been a financial services executive, advisor, strategist and investor for over 30 years. Over the last eight years, he has been an executive officer of F.N.B. Corporation, a regional multi-bank holding company, in charge of community banking. In October 2002, he completed a 15 month assignment as Chief Financial Officer of Bay View Capital Corporation . He is currently on the board of directors of F.N.B. Corporation, Bay View Capital and Jacksonville Bancorp.

ABOUT WHITE RIVER, COASTAL CREDIT AND UAC

White River is the holding company for Coastal Credit LLC and Union Acceptance Company LLC.

Coastal Credit is a specialized subprime auto finance company engaged primarily in (1) acquiring retail installment sales contracts from both franchised and independent automobile dealers which have entered into contracts with purchasers of used and, to a much lesser extent, new cars and light trucks, and (2) servicing the contract portfolio. Coastal Credit commenced operations in Virginia in 1987 and conducts business in sixteen states through its fourteen branch locations. Coastal Credit recognized total revenues of $23.8 million and net income of $6.7 million for the year ended December 31, 2004. Coastal Credit recognized total revenues of $23.3 million and net income of $6.1 million for the year ended December 31, 2003. Coastal Credit's historical consolidated financial information reflects its status (prior to the acquisition by White River) as a limited liability company taxed as a partnership.

UAC is a specialized auto finance company. Since confirmation of UAC's bankruptcy Plan of Reorganization in August 2003, UAC has carried out the terms and provisions of the Plan of Reorganization. UAC is continuing business activities related to oversight of collection and refinancing of its securitized and unsecuritized auto receivable portfolios in compliance with its Plan of Reorganization. Generally, UAC continues to collect cash as it becomes available from prescribed assets of the bankruptcy estate and to distribute such cash to the creditors of the bankruptcy estate who made allowed claims in the bankruptcy case. As a result of a creditor buyout, White River holds a substantial majority of the claims.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

Additional information is available in White River's public filings with the SEC (which can be viewed on the SEC's website at www.sec.gov), including but not limited to its Current Reports on Form 8-K dated September 2, 2005 and August 12, 2005, and its Quarterly Report on Form 10-Q dated August 26, 2005. The subscription offering was effected under a Registration Statement on Form S-1/S-4 (Reg. No. 333-123909) which is also available on the SEC's website.