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Smart Choice Announces Reverse Stock Split

24 August 1998

Smart Choice Announces Reverse Stock Split

    TITUSVILLE, Fla., Aug. 21 -- Smart Choice Automotive Group,
Inc. , a leading consolidator in the "dealer-financed" used car
retailing industry in the Southeastern United States, today announced that its
Board of Directors has approved a one-for-two reverse stock split.  The
Company expects the reverse split to take effect before trading begins on or
about August 24, 1998.
    The reverse split will reduce the company's outstanding shares of common
stock to approximately 6.5 million, from approximately 13 million shares
outstanding.  Gary R. Smith, President and Chief Executive Officer of Smart
Choice Automotive Group, Inc., said, "We believe this will create a more
rational trading environment for our equity."  The company will be notifying
all of its current holders of common stock of the need to send their share
certificates to the company's transfer agent, American Stock Transfer & Trust
Company, so that new certificates representing shares of post reverse split
common stock can be issued.
    Joe Mohr, Chief Financial Officer, said, "The reverse split does not
change the underlying economics of the company for the shareholders, but we
believe the resulting increase in the share price will allow us to attract
greater interest within the investment community."
    Smart Choice also has outstanding 1,200,000 public warrants which are
traded on the Nasdaq SmallCap Market.  The reverse split will not affect the
number of publicly-traded warrants but the number of shares of common stock
issuable upon the exercise of each warrant will decrease from one share of
common stock to 0.5 shares.  In addition, the exercise price to be paid by
holders of warrants will increase from $6.50 for a whole share of common stock
to $13.00 for a whole share of common stock.  A separate notice outlining the
adjustment will be mailed to the holders of the publicly-traded warrants.
    Smart Choice Automotive Group, Inc. operates a network of used car stores
in Florida.  The Company underwrites, finances and services retail installment
contracts generated from the sale of used cars by its stores.  Its Eckler's
subsidiary is one of the world's largest aftermarket suppliers of Corvette
parts and accessories.
    Smart Choice Automotive Group, Inc. is headquartered in Titusville,
Florida and its common stock trades on Nasdaq under the symbol "SMCH."
    This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe",
"estimate", "project", "expect" or similar expressions.  These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.  Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements.  Factors that would cause or contribute
to such differences include, but are not limited to, continued acceptance of
the Company's products in the marketplace, competitive factors, receivables
portfolio risks, dependence upon third-party vendors, and other risks detailed
in the Company's Registration Statement on From S-1 (file no. 333-59375) and
periodic reports filed with the Securities and Exchange Commission.  By making
these forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of this
release.