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National Auto Credit Pays Down Debt and Evaluates Alternatives

7 July 1998

National Auto Credit Pays Down Significant Portion of Debt and Evaluates New Alternatives

    SOLON, Ohio, July 7 -- With the payment of $9 million
principal on June 25, National Auto Credit (NAC) (OTC BULLETIN BOARD: NAKD)
has repaid its lenders a total of $31.6 million or 38% of the debt outstanding
at January 21, 1998.  A new definitive extension agreement was reached with
lenders that calls for weekly payments of $1 million principal and interest
(at prime rate plus 2%) through September 30, 1998, in addition to the
$9 million  payment.
    "Our ability to meet the commitments agreed to with our lenders
demonstrates the underlying financial strength of National Auto Credit," said
Tom Cross, Chief Executive Officer.
    "With current outstanding debt of $52.2 million, NAC is exploring and
evaluating refinancing options in advance of the debt maturity date of
September 30, 1998," said Cross.  At the same time, he added, "The Company is
pursuing additional credit lines for business expansion.  We are looking to
add dealers, but are targeting only those dealers with demonstrated strong
track records," Cross emphasized.  Mr. Cross was recently named to serve as
Chief Executive Officer during the turnaround of NAC.  He is a principal of
Jay Alix & Associates, the nation's largest firm specializing in serving
financially underperforming companies.  Based in Southfield, Michigan, Jay
Alix was retained to advise on refining NAC's business strategies and
developing new ones to strengthen its position in the marketplace.
    Commenting on the recent developments, Mr. Cross stated:  "The cooperation
we have received from the Company's lender group has been extremely helpful in
providing us the time to stabilize operations, improve collection processes,
pursue new business opportunities and seek out new financing for future
growth."
    National Auto Credit is a specialized financial services company providing
funding, receivables management and collection services to automobile dealers
who sell and finance the purchase of vehicles to retail consumers who are
employed, but have little or no access to consumer credit.
    The statements contained in this release that are not purely historical
are forward looking statements within the meaning of the Securities and
Exchange Act of 1934.  Among the factors that could cause actual results to
differ materially from the forward looking statements are the potential for
greater than anticipated non-performing contracts, the potential for lower
than anticipated recoverability of amounts advanced to the Company's member
dealers, availability of funds under the Company's financing arrangements, and
other factors as discussed in the Company's reports filed with the Securities
and Exchange Commission.