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AutoBond Preferred Dividend Announcement

15 March 1999

AutoBond Preferred Dividend Announcement

    AUSTIN, Texas, March 15 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the Amex under the symbol ABD, will not
pay the dividend payment for its preferred stock in the amount of $0.375 per
share due on March 31, 1999.
    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 the sale 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.
AutoBond currently has 6,531,311 common and 1,125,000 preferred shares
outstanding.

    Contact:  Adrian Katz of AutoBond Acceptance Corporation, 512-435-7000.