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AutoCorp Equities Announces Major Corporate Restructuring

11 January 1999

AutoCorp Equities Announces Major Corporate Restructuring

    SCOTTSDALE, Ariz., Jan. 11 -- AutoCorp Equities, Inc.
(OTC Bulletin Board: ACOR) announced today a major corporate restructuring
relating to its debt, wholly owned subsidiaries and management.
    AutoCorp was able to satisfy approximately $3,700,000 of indebtedness
guaranteed by it with the issuance of 1,091,113 shares of common stock from
its treasury and 3,214,046 shares of a new series of preferred stock.  The
Company was also released from additional guaranteed indebtedness of
approximately $3,500,000 by issuing 3,500,000 shares of the new preferred
stock as collateral.  The Company was able to complete this transaction
without increasing the number of common stock shares currently issued.
    Separately, the Company has sold all of its original subsidiaries to
former affiliates.  These subsidiaries include the operating subsidiaries of
AutoCorp in Arizona and Texas.  In exchange, the former affiliates transferred
approximately 2,683,000 shares of the Company's common stock to the company
treasury, a substantial portion of which has been re-issued in connection with
the restructuring transaction completed December 30, 1998.
    The Company will now operate the bulk of its business through its two
newly acquired subsidiaries, ACE Motor Company, Inc. and AutoCorp Financial
Services, Inc.  ACE Motor Company will manage the Company's dealership
operations and dealer acquisition, ACE Motor Company currently operates from
four-used car retail locations in Texas.  AutoCorp Financial Services will
service auto retail installment contracts for ACE Motor Company and will
acquire additional loan companies and loan portfolios.  AutoCorp Financial
Services currently operates four loan service facilities in Texas and has
recently acquired Buyers Acceptance Corporation, Inc., an auto finance company
located in Louisville, Kentucky and a portfolio of contracts in Lufkin, Texas.
ACE Financial Services intends to continue servicing virtually all its loans
to AutoPrime, Inc. with recourse but has and will retain the loan servicing
rights.  The Company currently services a contract portfolio with an aggregate
value in excess of $10,000,000.  AutoCorp and its subsidiaries are also in the
final negotiation stages for several additional dealerships and large loan
portfolios in other states.
    Charles Norman, age 41, has been elected president and chief executive
officer and a Director.  Norman has an extensive background in the non-prime
loan industry with nearly fifteen years experience relating to company and
portfolio acquisitions, non-prime loan securitizations and direct management
of non-prime companies.  Mr. Norman was previously the Director of Asset
Management for AutoPrime, Inc., a Dallas based non-prime financial service
company.
    All other former officers and directors have resigned with the exception
of company founder William 0. Merritt who will remain a director.
    The Company has relocated its corporate offices to Dallas, Texas.