---

APCO Management Comfortable With Analysts' Consensus Estimate

2 July 1998

Automobile Protection Corporation - APCO - Management Comfortable With Analysts' Consensus Estimate for the Second Quarter Ended June 30, 1998

    ATLANTA, July 1 -- Automobile Protection Corporation
announced that management is comfortable with the consensus
estimate of $0.11 diluted earnings per share for the second quarter ended June
30, 1998.
    Larry I. Dorfman, President/CEO stated: "We have received a large number
of inquiries regarding second quarter results, due to certain industry
specific events.  We are pleased to report that we closed the June business
month yesterday and on a preliminary basis,  the second quarter of 1998 should
be another all-time record for the company and we are comfortable that diluted
earnings per share will, at a minimum, meet analysts' consensus estimates."
    Mr. Dorfman also provided an update on the status of three recently
announced agreements:

    Banc One Insurance Services Corporation.
    The Banc One service contract program, The One(R) Care, was officially
released on June 1 in the state of Ohio.  At present,  Banc One has marketing
representatives in the field making presentations to dealers and has already
signed dealers to the program.  Through the end of the year, Banc One plans to
make dealer presentations in  those states in which they have the highest
concentration of dealer relationships.  The planned merger of Banc One and
First Chicago NBD significantly increases the revenue potential of our
relationship, by increasing their dealer relationships from 12,000 to 17,000,
which places them in the top 3 in indirect lending to automobile dealers.

    Allstate Insurance Company.
    Allstate has commenced marketing the Allstate Parts & Labor Plus program
through its agents and direct marketing and for the past month, The Aegis
Group, Inc., our administrator, has received a steady flow of policies each
day.  While not financially significant yet, the early marketing results are
encouraging.

    Manheim Auto Auctions.
    The Georgia pilot program is to kick off on July 29, 1998 with an
invitation only event to a select group of Manheim dealer customers.  APCO has
arranged for Hall of Fame Football Coach Joe Gibbs of Joe Gibbs Racing to be
the guest speaker at the kick off event to be held in Atlanta.  Joe will
explain his relationship with APCO and EasyCare(R) and how the dealers can
build a winning team using the Manheim EasyCare(R) program.  It is expected
that the pilot phase will last for 90 to 120 days.

    The company expects to report second quarter results at the end of July.
    APCO, established in 1984, is a leading marketer and administrator of
products and services to automobile and recreational vehicle dealers.  The
Company's core business is the marketing and administration of EasyCare(R)
Vehicle Service Contracts and the EasyCare(R) Certified Pre-Owned Vehicle
Merchandising Program.  The Company also administers warranty and service
contract products under private labels for financial institutions, an
insurance company and a manufacturer.
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:  To the extent that this news release discusses financial
projections, information or expectations about our products or markets, or
otherwise makes statements about the future, our statements are forward
looking and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from the statements made.  The
specific risk factors are described in the Company's Form 10-K that has been
filed with the Securities & Exchange Commission in connection with its 1997
year.