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Imperial Credit Industries, Inc. Announces Discontinued Auto Financing Activities

31 July 1998

Imperial Credit Industries, Inc. Announces Discontinued Auto Financing Activities

    TORRANCE, Calif., July 31 -- Imperial Credit Industries, Inc.
is shifting its strategic focus relating to its automobile
financing activities.  The operations of ICII's wholly owned sub-prime
automobile finance subsidiary Automotive Marketing Network, Inc. ("AMN") will
be discontinued.

    H. Wayne Snavely, Chairman of ICII, stated:
    "AMN, which originates and services sub-prime automobile retail contracts
on a nationwide basis, has been a disappointment to ICII.  AMN's problems are
industry-wide and are not unique to the company, which has benefited from the
efforts of a strong management team and a dedicated staff.  Nevertheless, we
cannot justify any additional investment in this subsidiary."

    AMN has entered into an agreement with Ugly Duckling Corporation and
its subsidiary Cygnet Financial Services, Inc, to service, in the role
of Special Servicer, the remaining AMN loan portfolio.  The agreement
allows AMN to promptly cease its originations and transfer the servicing
functions to Cygnet's Phoenix, Denver or Nashville operations centers.

    Mr. Snavely also stated:
    "We believe this to be a beneficial transaction for both companies as it
enables ICII to have a smooth exit from a business that is not producing
adequate returns while at the same time, significantly increasing the
servicing portfolio of Cygnet's highly cost efficient servicing operation."

    Imperial Credit Industries, Inc., is a nationally diversified financial
services company headquartered in Torrance, California.  Through its
subsidiaries and affiliates, it offers commercial and consumer loans,
asset management services and investment banking services.  At year-end
1997, ICII had consolidated assets of $2.1 billion; revenue and net
income for 1997 were $310 million and $86 million respectively.

    This Press Release contains forward looking statements within the means
of the Private Securities Litigation Reform Act of 1995, which can be
identified by the use of forward-looking terminology such as "may,"
"will," "intend," "should," "expect," "anticipate," "estimate" or "continue"
or the negatives thereof or other comparable terminology.  The Company's
actual results could differ materially from those anticipated in such forward-
looking statements as a result of certain factors, including those set forth
in the Registration Statement filed with the Securities and Exchange
Commission.

    For further information contact:

    Karen Montandon
    Imperial Credit Industries, Inc.
    (310) 791-8022

    Daniel Rood
    Imperial Credit Industries, Inc.
    (310) 791-8041