Credit Depot announces agreement to sell $125 million of sub-prime first mortgage residential loans

Business Wire, Nov 13, 1996

GAINESVILLE, Ga.--(BUSINESS WIRE)--Nov. 13, 1996--Credit Depot Corporation (Nasdaq: LEND) today announced that it has entered into an agreement to offer for sale $125 million of sub-prime first mortgage residential loans to a large national financial institution which will be included in a larger securitized loan pool.

Gerald F. Sullivan Sr., President and Chief Executive Officer, stated: "We are pleased to launch the next step towards our securitization program which complements our improved financial foundation and is an important part of the Company's overall financing strategy. This agreement also provides Credit Depot with additional liquidity and operating flexibility to capitalize on the growth opportunities in the subprime residential real estate financing market."

Credit Depot Corporation is a multi-state financial services Company that provides residential real estate financing to individuals unable to secure loans through conventional sources. The Company currently originates loans through its offices in Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina, and Tennessee. These loans are collateralized by mortgages, primarily on owner-occupied residential properties.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release regarding matters that are not statements of historical fact, including statements relating to plans, strategies, expectations and future economic results, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the statements made, as a result of various factors, including risks associated with the Company's mortgage loan investments, such as the risks of defaults on mortgage loans, economic and other factors which impact real estate values and prevailing interest rates, the Company's ability to originate a sufficient volume of mortgage loans, the Company's ability to resell the mortgage loans in the secondary market, and other factors which are listed from time to time in the Company's Securities and Exchange Commission filings.

CONTACT: Gerald F. Sullivan/Charles Farrahar

Credit Depot Corporation

770/531-9927

or

John P. Kehoe/Van Negris

Kehoe, White, Savage & Co., Inc.

212/888-1616