ACC Consumer Finance Corporation Provides Notice of Cash Component of Merger Consideration

Business Wire, Oct 7, 1997

SAN DIEGO--(BUSINESS WIRE)--Oct. 7, 1997--ACC Consumer Finance Corporation (NASDAQ:ACCI) Tuesday announced that it has received notice from Household International (NYSE:HI) regarding the cash component of the merger consideration to be received in connection with the proposed merger of ACCI and Household's subsidiary, Household Auto Corp.

Household provided notice to ACCI that it will pay cash equal to $3.50 for each share of ACCI stock. The remaining $18.50 of the $22.00 of merger consideration will be paid in Household common stock. The Household stock will be valued on the basis of the volume-weighted average price of Household common stock during the ten-day trading period beginning October 7, 1997, and ending October 20, 1997. The transaction is expected to be completed on October 21, 1997, following a meeting of ACCI's stockholders at which the merger is expected to be approved.

Under the terms of the definitive agreement executed by ACCI and Household on August 24, 1997, Household was entitled to elect to pay cash of not less than $2 per ACCI share and not more than $4 per ACCI share.

ACCI focuses on the indirect financing of automobile installment contracts purchased primarily from franchised automobile dealers for consumers who have limited access to traditional sources of financing for vehicle purchases. ACCI manages a portfolio of more than $500 million in such contracts. The company purchases these contracts through its six regional credit centers in Atlanta; Dallas; Newark, Del.; Miami; St. Louis and San Diego.

The Company currently actively markets its program to dealers in Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and West Virginia.

Household International, through its subsidiaries, is a leading provider of consumer finance and credit-card products in the United States, Canada and the United Kingdom. -0-

Note to Editors: ACC Consumer Finance Corporation's full-text news releases and financial information is available at http://www.businesswire.com/cnn.acci.htm .

CONTACT: ACC Consumer Finance

Rellen M. Stewart, 619/793-6300