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Smart Choice Automotive Group Announces Second Quarter Operating Results

21 August 1997

Smart Choice Automotive Group Announces Second Quarter Operating Results

        Second Quarter Revenues Increase 76% Over First Quarter Levels

    TITUSVILLE, Fla., Aug. 21 -- Smart Choice Automotive Group,
Inc. today announced operating results for the second quarter
and first half of its 1997 year.
    For the three-month period ended June 30, 1997, the Company reported a net
loss of $363,788 ($0.04 per share) on revenues approximating $14.8 million.
This represented a significant improvement over the first quarter of 1997,
when the Company reported a loss of $5.5 million ($0.69 per share) on $8.4
million in revenues.  During the six months ended June 30, 1997, revenues
reached $22.9 million and the Company recorded a net loss of $6,054,071 ($0.72
per share).
    "Revenues increased more than 75% between the first and second quarters of
1997, as we continued to pursue an aggressive acquisition program, consistent
with our regional consolidation strategy in the new and used automobile
markets," commented Gary R. Smith, President and CEO of Smart Choice
Automotive Group, Inc.  "We purchased four and opened three used car retail
locations during the April-June period, bringing the total to sixteen by the
end of the quarter.  We plan to open two more used car outlets in September
and are looking at a number of prospective acquisition candidates."
    "In addition to our used car retailing and finance operations, Smart
Choice has contracted to acquire three new car franchise dealerships which
sell the following brands: Acura, Nissan, Volvo, Volkswagen, Subaru and Audi,"
continued Smith.  "We plan to introduce captive financed used car retailing to
enhance the operating results of these locations."
    "Our finance subsidiary, Florida Finance Group, Inc., increased in size by
47% during the second quarter," noted Fred Whaley, Chief Financial Officer of
the Company.  "Since the first of the year, our finance subsidiary has
expanded from 773 accounts and $7.6 million in gross finance receivables, to
6,855 accounts and $44.5 million in gross finance receivables."
    "The modest net loss in our second quarter represented a significant
improvement over first quarter results, when our Company merged with Eckler
Industries, Inc. and incurred significant non-recurring expenses" continued
Whaley.  "Second quarter revenues increased 76% from first quarter levels, and
we believe that we are beginning to realize certain economies of scale within
our organization.  However, certain operating expenses remain high, relative
to revenues, as we consolidate acquisitions, open new dealerships, and develop
the operating infrastructure necessary to manage a much larger organization in
the future."
    Headquartered in Titusville, Florida, Smart Choice Automotive Group, Inc.
(formerly named "Eckler Industries, Inc.") operates a network of self-financed
used vehicle and new car dealerships in the Southeastern United States.  The
Company also underwrites, finances and services retail installment contracts
generated from the sale of used cars by its dealerships.  Its Eckler's
subsidiary is one of the largest aftermarket suppliers of Corvette parts and
accessories in the world.  The Company also provides training and insurance
services for automobile dealers throughout the United States.  Its common
stock trades on Nasdaq under the symbol "SMCH".
    Any forward-looking statements in this release are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Act of 1995.
Investors are cautioned that actual results may differ substantially from such
forward-looking statements.  Forward-looking statements involve risks and
uncertainties including, but not limited to, continued acceptance of the
Company's products and services in the marketplace, competitive factors,
receivables portfolio risks, dependence upon third-party vendors, and other
risks detailed in the Company's periodic filings with the Securities and
Exchange Commission.

                        SMART CHOICE AUTOMOTIVE GROUP
                  SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

                                             Three Months Ended

                                                     June 30
                                                        1997

     Vehicle and Related Revenues:
     Sales of Used Vehicles                       $7,003,702
     Income on Finance Receivables                 1,927,736
     Income from Insurance & Training                388,976
     Income from Parts & Accessories               5,473,447
                                                  14,793,861

     Cost of Vehicle & Vehicle Related Revenues:
     Cost of Used Vehicles Sold                    5,304,253
     Cost of Insurance & Training                     23,149
     Cost of Parts & Accessories Sold              3,347,344
     Provision for Credit Losses                     499,131
                                                   9,173,877

     Net Revenues from Vehicle Sales and
      Vehicle Related Activities                   5,619,984

     Expenses:
     Operating Expenses                            4,938,188
     Compensation Expense Related to
      Employee Stock Options                          88,890
                                                   5,027,078

     Income (Loss) from Operations                   592,906

     Other Expense (Income):
     Interest Expense                              1,055,996
     Other Income                                  (104,576)
     Miscellaneous Expense                             5,274
                                                     956,696

     NET LOSS                                     $(363,788)

     NET LOSS PER SHARE                              $(0.04)

     Weighted Avg. Number of Shares
      & Equivalents Outstanding                    8,936,308

     SMART CHOICE AUTOMOTIVE GROUP
     SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

                                            Six Months Ended

                                                     June 30
                                                        1997

     Vehicle and Related Revenues:
     Sales of Used Vehicles                     $ 11,443,778
     Income on Finance Receivables                 2,492,356
     Income from Insurance & Training                692,795
     Income from Parts & Accessories               8,275,662
     Total Revenues                               22,904,591

     Cost of Vehicle & Vehicle-Related Revenues:
     Cost of Used Vehicles Sold                    8,552,851
     Cost of Insurance & Training                     39,190
     Cost of Parts & Accessories Sold              5,065,589
     Provision for Credit Losses                   1,548,811
                                                  15,206,441

     Net Revenues from Vehicle Sales and
      Vehicle-Related Activities                   7,698,150

     Expenses:
     Operating Expenses                            9,846,487
     Compensation Expense Related to
      Employee Stock Options                       2,325,765
                                                  12,172,252

     Income (Loss) from Operations               (4,474,102)

     Other Expense (Income):
     Interest Expense                              1,623,500
     Other Income                                  (113,749)
     Miscellaneous Expense                            70,218
                                                   1,579,969

     NET LOSS                                  $ (6,054,071)

     NET LOSS PER SHARE                              $(0.72)

     Weighted Avg. Number of Shares
      & Equivalents Outstanding                    8,397,713

SOURCE  Smart Choice Automotive Group Inc.