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AutoBond Announces Dismissal of Preferred Shareholder Lawsuit

18 August 1999

AutoBond Announces Dismissal of Preferred Shareholder Lawsuit

    AUSTIN, Texas, Aug. 17 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the AMEX under the symbol ABD, is pleased
to announce that a federal judge has dismissed a lawsuit brought against the
Company on behalf of all purchasers of AutoBond Acceptance Corporation's 15%
series A cumulative preferred stock between February 20, 1998 and February 26,
1999.  The federal securities law claims alleged in the lawsuit were dismissed
with prejudice to refiling.  Certain state law claims, also alleged, were
dismissed without prejudice to refile in state court.
    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.  AutoBond currently has 6,531,311 common and 1,125,000 preferred
shares outstanding.
    NOTE:  This is not an offer to buy or sell securities or assets of any
kind.