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Smart Choice Automotive Group to Take Non-Recurring, Non-Cash Charge

18 January 1998

Smart Choice Automotive Group to Take Non-Recurring, Non-Cash Charge

    TITUSVILLE, Fla., Jan. 16 -- Smart Choice Automotive Group,
Inc. today announced that the Company's operating results for
the quarter ended December 31, 1997 will include a non-recurring charge of
approximately $7 million.  This charge relates to acquisition expenses
involving severance, other costs related to employment contracts, stock option
amortization, and certain interest charges.  "These are one-time adjustments
and future transactions will be structured to avoid these charges," noted
Joseph E. Mohr, chief financial officer of Smart Choice Automotive Group, Inc.
    "Management implemented a restructuring and cost-reduction program late
last year, which was intended to improve operating results and reduce our
reliance upon  additional equity during the next twelve months," commented
Gary Smith, president and chief executive officer of Smart Choice Automotive
Group, Inc.  "We have reduced our Company's payroll by approximately 14% since
December 1st, and a significant portion of the non-recurring charges incurred
in the fourth quarter were related to this workforce reduction and were non-
cash in nature.  Smart Choice entered 1998 with a much improved balance sheet,
and we look forward to a profitable first quarter."
    "While we will expand our dealership network at a more modest pace during
1998, we shall continue our role as a leading consolidator in the 'dealer-
financed' segment of the used car retailing industry," concluded Smith.
    Smart Choice Automotive Group, Inc. operates a network of 25 new and used
car dealerships in the Southeastern United States.  The Company 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 world's
largest aftermarket suppliers of Corvette parts and accessories.  The Company
also provides training and insurance services to automobile dealerships
throughout the United States.
    The Company is headquartered in Titusville, Florida and its common stock
trades on Nasdaq under the symbol "SMCH".

    Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform 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 in the marketplace, competitive factors, receivables
portfolio risks, dependence upon third-party vendors, and other risks detailed
in the Company's periodic report filings with the Securities and Exchange
Commission.

SOURCE  Smart Choice Automotive Group, Inc.