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AutoBond Announces New Origination Agreement

19 July 1999

AutoBond Announces New Origination Agreement

    AUSTIN, Texas, July 19 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the Amex under the symbol ABD, is pleased
to announce that it has entered into an agreement to originate retail
installment contracts on behalf of a finance company.  AutoBond expects to be
paid $400 per originated contract.  AutoBond is working on the operational
details of this agreement and can make no assurances with respect to future
volume that will be generated pursuant to the agreement.
    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 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 is licensed to acquire contracts nationwide from
dealers in approximately 40 states.
    The above statements include information that should be considered
forward-looking within the meaning of the Private Securities Litigation Reform
Act of 1995, and in addition involve a number of risks and uncertainties.
    NOTE:  This is not an offer to buy or sell securities or assets of any
kind.