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City Auto Exits Sub-Prime Auto Finance

17 March 1998

City Auto Exits Sub-Prime Auto Finance

    WEST PALM BEACH, Fla., March 16 -- City Auto Resource
Services, Inc. (OTC-Bulletin Board: CTYE) announced today that it was ceasing
operations in the sub-prime automobile finance business.  The Company was
founded 18 months ago.
    Commenting on the action, a Company spokesperson explained that "the
collapse of the sub-prime auto finance industry, unfortunately highlighted by
the failure of several overly aggressive industry participants, has made it
impossible for the Company to obtain the necessary funding to implement a
competitive financing program for its associated franchised dealers."
    The spokesperson said that the Company's Board of Directors was "reviewing
possible options and future opportunities that would enable the Company to
continue its public status.  It is also reviewing the current corporate
operating structure to determine how the Company may raise capital and operate
most efficiently going forward."
    The Company also announced that Robert B. McCurry, vice chairman, had
retired from City Auto's Board.  Mr. McCurry is being replaced on the Board by
Armand Zullo, a private investor and a shareholder in City Auto.

SOURCE  City Auto Resource Services, Inc.