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AutoBond Announces Litigation Success

13 March 2000

AutoBond Announces Litigation Success

    AUSTIN, Texas, March 10 On February 8, 1999, AutoBond
Acceptance Corporation (OTC Bulletin Board: AUBD) ("AutoBond Acceptance"),
AutoBond Master Funding Corporation V, a wholly-owned subsidiary of AutoBond
Acceptance ("Master Funding", and collectively with AutoBond Acceptance,
"AutoBond"), William O. Winsauer, the Chairman and Chief Executive Officer of
AutoBond Acceptance, John S. Winsauer, the Director of Marketing and Secretary
of AutoBond Acceptance, and Adrian Katz, the former Vice-Chairman, Chief
Operating Officer and Chief Financial Officer of AutoBond Acceptance
(collectively, the "Plaintiffs") commenced an action in the District Court of
Travis County, Texas (250th Judicial District) against Dynex and James Dolph
(collectively, the "Defendants").  The Plaintiffs asserted that Dynex' refusal
to fund AutoBond breached the terms of the Credit Agreement, dated
June 9, 1998, (the "Credit Agreement"), by and among AutoBond Acceptance,
Master Funding and Dynex.  The Plaintiffs also claimed that Dynex defamed
Plaintiffs subsequent to such refusal.  Plaintiffs also alleged that Dynex and
Mr. Dolph conspired to misrepresent and mis-characterize AutoBond's credit
underwriting criteria and its compliance with such criteria with the intention
of interfering with and causing actual damage to AutoBond's business,
prospective business and contracts.
    On March 9, 2000, following a four-week jury trial, the jury returned a
verdict in favor of the Plaintiffs.  Specifically, the jury found that (a)
AutoBond made no material, knowing or reckless misrepresentations to induce
Dynex to enter into the June 9, 1998 agreements between the parties, (b)
AutoBond did not breach its June 9, 1998 agreements with Dynex prior to Dynex'
cessation of funding, and (c) Dynex maliciously or negligently made defamatory
statements about AutoBond.  Based on these findings, the jury awarded AutoBond
$18.7 million in direct lost profits and approximately $50 million in
consequential lost profits.
    AutoBond is a specialty consumer finance company that has been 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.
    NOTE:  This not an offer to buy or sell securities or assets of any kind.
    Contact:  William O. Winsauer of AutoBond Acceptance Corporation,
512-435-7000.