---

Union Acceptance Corporation Announces $200 Million Warehouse Facility

30 May 2000

Union Acceptance Corporation Announces $200 Million Warehouse Facility

    INDIANAPOLIS--May 30, 2000--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAFC -1 Corporation, has closed a $200 million unwrapped warehouse facility through Bank of America, N.A. The credit facility will provide funding primarily for prime receivable acquisitions.
    "This facility accomplishes our objectives of increasing warehouse capacity in line with our growth strategy and diversifying our funding sources," commented John Stainbrook, President and Chief Executive Officer. "Additionally, we are pleased with the strength of our relationship with Bank of America resulting in an unwrapped facility."
    In addition to the unwrapped warehouse facility, UAC utilizes a wrapped revolving warehouse facility with a capacity of $500 million. External financing also includes a $375 million commercial paper conduit. Other sources of liquidity are funds from operations, long-term debt and securitization transactions.

    Corporate Description

    UAC is one of the nation's largest independent, indirect automobile finance companies. The Company's primary business is acquiring, securitizing and servicing prime retail installment sales contracts. These contracts are originated by dealerships affiliated with major domestic and foreign automobile manufacturers. The Company is focused on the upper-end of the credit quality spectrum. Union Acceptance Corporation commenced business in 1986 and currently acquires receivables from over 4,600 manufacturer-franchised dealerships in 38 states. By using state-of-the-art technology in a highly centralized underwriting and servicing environment, Union Acceptance Corporation enjoys one of the lowest cost operating structures in the independent prime automobile finance industry.