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National Auto Credit Announces Settlement of Frankino Litigation

7 November 2000

National Auto Credit, Inc. Announces Settlement of Frankino Litigation and Stock Repurchases

    SOLON, Ohio, Nov. 6 National Auto Credit, Inc.
(OTC Bulletin Board: NAKD) announced today that it has settled all outstanding
litigation with Samuel J. Frankino and has agreed to repurchase all of the
Company securities held by Mr. Frankino and certain of his related parties.
    Certain disputes and differences had arisen between Mr. Frankino and the
Company, which resulted in litigation styled National Auto Credit, Inc. v. Sam
J. Frankino, C.A. No. 17973 and Sam J. Frankino v. David L. Huber, et al.,
C.A. No. 17984, both pending in the Court of Chancery of the State of
Delaware.  Pursuant to the settlement reached on November 3, 2000, among other
things, the litigation has been dismissed, the Company has agreed to
repurchase from Mr. Frankino and related parties 15,863,360 Company common
shares for an aggregate purchase price of $35,520,522.  In addition, Mr.
Frankino and certain of his related parties have agreed to certain standstill
and related restrictions regarding their future involvement with the Company.
The Company also agreed to reimburse Mr. Frankino for certain expenses
incurred in this and other Company-related legal matters.
    In connection with the settlement, Mr. Frankino and four other Company
directors, Robert Upton, William Dodero, Lorraine Dodero and William Maund,
resigned from the Company's Board of Directors.
    The Company simultaneously repurchased from Reading Entertainment, Inc.
and affiliates (collectively, "Reading") 5,277,879 of the 10,055,000 Company
common shares owned by Reading and all 100 of the Company's preferred shares
owned by Reading for an aggregate purchase price of $8,468,770.  Pursuant to
the terms of the agreement, Reading and the Company have agreed to certain
standstill restrictions, voting arrangements, corporate governance and related
matters.
    As a result of these two stock repurchases, there are 13,611,723 Company
common shares outstanding.  The repurchase and expense reimbursements will
result in a significant charge against the Company's operating results for the
quarter ending January 31, 2001.
    In connection with these transactions, Messrs. James Cotter, Scott Braley,
John Gleason and William Marshall joined the Company's Board of Directors.
Mr. James McNamara was named interim Chairman of the Board and Chief Executive
Officer.
    Mr. McNamara stated:  "These transactions mark the end of an arduous and
troubled era for the Company.  With these events behind us, we now can focus
our attention and resources on the opportunities before us to restore investor
confidence and enhance stockholder value."