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Smart Choice Automotive Group Announces Equity Investment

13 May 1998

Smart Choice Automotive Group Announces $2.2 Million Equity Investment

    TITUSVILLE, Fla., May 13 -- Smart Choice Automotive Group,
Inc. , a leading consolidator of the 'dealer-financed' used car
retailing industry in the Southeastern United States, today announced that it
has raised $2.2 million in additional equity capital via the sale of
convertible preferred stock to a group of investors led by Mr. Jim Walter.
The preferred stock can be converted into common stock of Smart Choice
Automotive Group, Inc. at any time, at a fixed price which is above the market
price on the date of the closing of the private placement.
    "We are very pleased to welcome Jim Walter as a significant stakeholder in
our Company," commented Gary R. Smith, president and chief executive officer
of Smart Choice Automotive Group, Inc.  "Jim built and financed homes for
customers in Florida and throughout the nation when he was chairman of Jim
Walter Homes, Inc.  He is familiar with our target market, and we view his
investment as a strong vote of confidence in Smart Choice's strategy for the
consolidation of the used-car retailing and finance industry."
    "Funds raised by this private placement will be used to purchase
additional inventory for our First Choice Auto Finance used-car dealerships
and  open additional stores," stated Joseph Mohr, chief financial officer of
Smart Choice Automotive Group, Inc.  "A lack of financing for many subprime
lenders has caused many of our competitors to retrench in recent months, and
we consider this an opportunity for Smart Choice to increase market share and
continue its consolidation strategy."
    Smart Choice Automotive Group, Inc. operates a network of 24 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 Industries 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.
    Smart Choice Automotive Group, Inc. is headquartered in Titusville,
Florida and its common stock trades on Nasdaq under the symbol "SMCH".
    This press release includes statements that may constitute "forward-
looking" statements, usually containing the words "believe", "estimate",
"project", "expect" or similar expressions.  These statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements.  Factors that would cause or contribute to such
differences include, but are not limited to, continued acceptance of the
Company's products in the marketplace, competitive factors, dependence upon
third-party vendors, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission.  By making these forward-
looking statements, the Company undertakes no obligation to update these
statements for revisions or changes after the date of this release.

SOURCE  Smart Choice Automotive Group, Inc.