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Autobond Forms Strategic Alliance With Dynex

11 June 1998

Autobond Forms Strategic Alliance With Dynex

    AUSTIN, Texas, June 10 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), is pleased to announce a strategic alliance with
Dynex Capital, Inc. and its affiliates ("Dynex").
    AutoBond will receive non-recourse financing for all currently warehoused
and future finance contract acquisitions for a one year period.  This
financing could total approximately $300 million.  In addition, Dynex has
purchased three million dollars of five year maturity debt at 12% interest,
convertible for a one year period into the outstanding shares of AutoBond at
$6.00 per share.  Dynex has received an option to purchase stock at a price of
$6.00 per share for a one year period held by the three principal shareholders
of AutoBond, representing approximately 85% of the currently outstanding
common stock.
    These financings will significantly increase the liquidity and operating
flexibility of AutoBond in its efforts to best serve its existing and
prospective automobile dealership relationships.
    AutoBond is also announcing the record date for its preferred stock
dividend as June 22, 1998.  The dividend will be paid on June 30, 1998.
    Dynex Capital, Inc. is a self-managed real estate investment trust that
originates, services, securitizes and invests primarily in residential
mortgage loans and securities.  Dynex's strategy is to use its production
operations to create investments for its portfolio, and, as a result, steadily
increase its net interest margin income and earnings per share over time.  At
March 31, 1998 Dynex had $6.1 billion in assets.
    AutoBond currently has 6,531,311 common and 1,125,000 perferred shares
outstanding.  AutoBond is a specialty consumer finance company engaged in
underwriting, acquiring, servicing and securitizing retail installment
contracts originated primarily by franchised automobile dealers in connection
with the sale of used and, to a lesser extent, new vehicles to selected
consumers with limited access to traditional sources of credit.  AutoBond is
located in Austin, Texas and acquires contracts nationwide from dealers in
approximately 40 states.