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AutoBond Acceptance Co. Secures $20 million Equity Line

20 May 1998

AutoBond Acceptance Corporation Secures $20 Million Equity Line

    CHICAGO, May 20 -- Dresner Investment Services, Inc., a
Chicago-based investment banking firm, today announced that Promethean
Investment Group, L.L.C., a New York City-based fund management group, had
entered into an agreement to provide AutoBond Acceptance Corporation
(Amex: ABD) an equity line of capital up to $20 million.  The agreement allows
Promethean to purchase common stock, in AutoBond, at a 5% discount to the
average trading price over a specified period of time preceding the purchase.
The decision to draw any funds and the timing, through the sale of common
stock, is solely at the discretion of AutoBond.  Other terms of the agreement
were not disclosed.  Dresner Investments served as the financial advisor to
AutoBond for this transaction.
    Alan Bernstein, Managing Director of Dresner Investments Services, Inc.
stated,  "Promethean recognized, as did we, that AutoBond has created a
platform that provides the company with the potential to become one of the
primary leaders in the ongoing consolidation of the sub-prime lending
industry."
    Adrian Katz, Vice Chairman and Chief Operating Officer of AutoBond stated,
"Dresner has done an excellent job for us.  They recognized the importance of
raising the capital that should grow our business and increase the value of
AutoBond for our shareholders."
    Dresner Investment Services, Inc., a Chicago-based NASD broker-dealer, is
one of the leading U.S. investment banks focused solely on private placements
of debt and equity and mergers & acquisition advisory services to middle
market and emerging growth companies nationwide.
    AutoBond Acceptance Corporation, headquartered in Austin, Texas, is a
leading, sub-prime automobile finance company, specializes in providing auto
loans to selected consumers with limited access to traditional sources of
credit.  AutoBond's installment contracts are originated primarily by
franchised automobile dealers for the purchase of used and, to a lesser
extent, new vehicles, in approximately 40 states.