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AutoBond Updates Investors on Dynex Litigation

27 August 1999

AutoBond Updates Investors on Dynex Litigation

    AUSTIN, Texas, Aug. 26 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the AMEX under the symbol ABD, is updating
investors with respect to its litigation with Dynex Capital, Inc.
("Dynex").
    The district court of Travis County, Texas today granted Dynex'
application for a temporary injunction ordering AutoBond to surrender
servicing on the finance contracts funded by Dynex to Dynex' designated
servicer.  Such order will be effective upon the posting of a $1,000,000 bond
by Dynex.  AutoBond intends to seek reconsideration of the court's decision.
Trial on the merits of the case was ordered for December 6, 1999.
    AutoBond is a specialty consumer finance company engaged in underwriting,
acquiring, and servicing 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
currently has 6,531,311 common and 1,125,000 preferred shares outstanding.
    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:  The following is not an offer to buy or sell securities or assets
of any kind.