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AutoBond Announces Record Month to End Fourth Quarter

4 January 1999

AutoBond Announces Record Month to End Fourth Quarter

    AUSTIN, Texas, Jan. 4 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the Amex under the symbol ABD, is pleased
to report finance contract acquisition volume of $18 million for December
1998.  This compares favorably with November 1998 volume of $14 million and
October 1998 volume of $10 million.  Furthermore, the aggregate fourth quarter
acquisition  volume of $42 million compares positively with third quarter 1998
acquisition volume of $24 million and represents a quarter-to-quarter increase
of 75%.  AutoBond attributes this increase to the introduction of its ALL
Program, a multi-tiered pricing program for finance contract acquisitions, and
the addition of seasoned sales representatives to its sales force.  It is
important to note that this increase in acquisition volume was achieved with
no change in the Company's underwriting guidelines.
    AutoBond currently has 6,531,311 common shares and 1,125,000 preferred
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 sales 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.