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Emergent Group, Inc. Announces Intent to Divest its Auto Lending Division

4 August 1997

Emergent Group, Inc. Announces Intent to Divest its Auto Lending Division

    GREENVILLE, S.C., Aug. 4 -- Emergent Group, Inc.
today announced plans to divest its auto lending division.
Emergent Group expects to determine within 90 days the feasibility of
completing a sale this year on acceptable terms.  Emergent's auto loan
division makes direct loans primarily to non-prime borrowers for the purchase
of used automobiles.  These loans are originated through eight retail offices
located throughout South Carolina.  The auto division originated $18 million
in loans in 1996, or about 4% of Emergent's total loan originations for that
year.  For the first half of 1997 the auto division originated $8 million in
loans.
    "We are divesting our auto loan division because it is such a small
portion of our overall operations and we believe it is in our best interest to
concentrate on the faster growing segments of our business," said Jack
Sterling, Chairman and Chief Executive Officer.
    Emergent Group, Inc. is a diversified financial services company which
specializes in non-prime first and second lien residential mortgage loans;
loans to small businesses, partially guaranteed by the U.S. Small Business
Administration; asset-based loans to small businesses secured by inventory and
accounts receivable; mezzanine-level financing to small businesses with
equity kickers; and management of a venture capital fund.  Emergent currently
has 956 employees and operates in 24 states.

SOURCE  Emergent Group, Inc.