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City Auto and Gulf States Acceptance Enter Into Loan Origination Agreement

5 August 1997

City Auto and Gulf States Acceptance Enter Into Loan Origination Agreement

    WEST PALM BEACH, Fla., Aug. 5 -- City Auto Resource Services,
Inc. (OTC-Bulletin Board: CTYE), through City Auto Resources, Inc., its wholly
owned subsidiary and an originator of loans for the consumer purchase of new
and used automobiles, said today that it has entered into a strategic alliance
through an agreement with Gulf States Acceptance Company, L.P., Houston,
Texas.  The agreement provides that Gulf States Acceptance will purchase auto
loans produced through City Auto from among twelve mega dealer shareholders.
    Commenting on the agreement, Kevin Baumann, president of City Auto
explained that "the pairing of our two companies will provide an immediate
enhanced flow of business for both companies."
    Gulf States Acceptance is a highly regarded and experienced finance
company specializing in retail installment contracts for non-prime buyers of
new and late model automobiles.  It has developed sophisticated credit
evaluation systems and state-of-the-art loan monitoring programs which support
its growing auto finance portfolio.  Gulf States Acceptance, a member company
of The Friedkin Automotive Companies, currently has a portfolio of over
$200 million in auto loans.
    Bob Cuillo, City Auto founder and chief executive officer and one of the
twelve mega dealers, added that "City Auto's Agreement with Gulf States
maximizes our strategy to efficiently utilize our capital as we proceed with
our planned nationwide expansion."

SOURCE  City Auto Resource Services, Inc.