National Auto Finance Company, Inc. Announces Quarter Ending March 31, 1999 Results

Business Wire, August 16, 1999

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Aug. 16, 1999--

Earnings (Loss) Per Share of $(0.10) vs. $(0.48)

National Auto Finance Company, Inc. (OTC BB:NAFI) today announced that it filed its Quarterly Report on Form 10-Q today, which reflects a loss of $1.7 million or $(0.10) per share for the quarter ended June 30, 1999 vs. a loss of $4.3 million or $(0.48) for the quarter ended June 30, 1998. The loss of $1.7 million includes one-time financial restructuring expenses of approximately $900,000.

Commenting on the announcement, Keith B. Stein, Chief Executive Officer, said, "We are pleased to see trends continue in a positive direction. Considering the challenges this Company has seen during fiscal years 1997 and 1998, we are excited about the prospects for future profitability."

National Auto Finance is a specialized consumer finance company engaged in the purchase, securitization and servicing of automobile loans primarily originated by manufacturer-franchised automobile dealers for non-prime consumers. The Company markets its products and services to dealers through the efforts of its direct sales force and through strategic referral and marketing alliances with financial and other institutions that have established relationships with dealers. The Company has active contractual relationships with approximately 775 dealers in 35 states.

Except for the historical information contained herein, this news release contains statements that are forward-looking statements within the meaning of applicable federal securities laws and are based upon the Company's current expectations and assumptions which are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. Primary factors that could cause actual results to differ include the availability of financing on terms and conditions acceptable to the Company, the ability of the Company to securitize its finance contracts in the asset-backed securities market on terms and conditions acceptable to the Company, and changes in the quality or composition of the serviced loan receivable portfolio. Certain of these as well as other factors are described in more detail in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, and in certain other reports filed by the Company with the Securities and Exchange Commission. -0-

                  NATIONAL AUTO FINANCE COMPANY, INC.
                            Balance Sheets
                  June 30, 1999 and December 31, 1998
                            (in thousands)

                                                June 30,     Dec. 31,
                                                  1999         1999
Assets:                                        (unaudited)
                                                --------     --------
Cash and cash equivalents                       $  6,989     $  9,540
Retained interest in securitizations,
 at estimated fair value                          34,053       34,117
Furniture, fixtures and equipment, net             3,483        3,277
Deferred financing costs                           4,603        2,759
Other assets                                       1,294        1,039
                                                --------     --------
      Total assets                              $ 50,422     $ 50,732
                                                ========     ========
Liabilities:
Accounts payable and accrued expenses           $  2,083     $  2,444

Accrued interest payable-related
 parties                                             873          117
Junior Subordinated Notes-related
 parties                                           2,096        1,940
Senior Subordinated Notes                         54,113       53,578
Notes payable
                                                     777        1,017
                                                --------     --------
     Total liabilities                          $ 59,942     $ 59,096
                                                --------     --------
Commitments and Contingencies

Mandatory Redeemable Preferred Stock
  series A-$0.01 par value; $1,000
  stated value; 1,000,000 shares
  authorized; 2,295 shares outstanding;
  redeemable in January 2005,
  stated at redemption value                       2,496        2,415

Stockholders' Equity (Capital Deficit):
Common Stock -$0.01 par value;
 20,000,000 shares authorized;
 17,280,762 shares outstanding                       173           90
Paid-in-capital                                   38,325       36,261
Accumulated deficit                              (50,514)     (47,130)
                                                --------     --------
  Total stockholders' equity
   (capital deficit)                             (12,016)     (10,779)
                                                --------     --------
  Total liabilities, mandatory
   redeemable preferred stock and
  Stockholders' equity (capital deficit)        $ 50,422     $ 50,732
                                                ========     ========



                  NATIONAL AUTO FINANCE COMPANY, INC.
                 Statements of Operations (unaudited)
       For the Three and Six Months Ended June 30, 1999 and 1998
                (in thousands, except per share data)

                          Three Months Ended       Six Months Ended
                                June 30                 June 30
                         --------------------    --------------------
                           1999        1998        1999        1998

Revenue:                 --------    --------    --------    --------
  Securitization
    related income       $  3,039    $  1,380    $  4,508    $  1,454
  Servicing income          1,411       1,643       2,859       2,915
  Interest income             372         599         814       1,295
  Other income                 80          78         443         156
                         --------    --------    --------    --------
    Total revenue           4,902       3,700       8,624       5,820
                         ========    ========    ========    ========
Expenses:
  Servicing expenses          736       2,326       1,593       4,630
  Interest expense          2,105       2,112       4,210       3,643
  Salaries and
    employee benefits       1,158       1,659       2,232       3,302
  Direct loan
    acquisition
    expenses                  239         573         493       1,223
  Depreciation expense        356         232         704         419
  Other operating
    expenses                1,943       1,088       2,855       2,025
                         --------    --------    --------    --------
    Total expenses          6,537       7,990      12,087      15,242
                         --------    --------    --------    --------
Loss before
  income taxes             (1,635)     (4,290)     (3,463)     (9,422)
Income taxes                 --          --          --          --
                         --------    --------    --------    --------
    Net loss               (1,635)     (4,290)     (3,463)     (9,422)
Preferred stock
  dividends                    40          40          80          80
                         --------    --------    --------    --------
Loss attributed to
  common shareholders    $ (1,675)   $ (4,330)   $ (3,543)   $ (9,502)
                         --------    --------    --------    --------
Per Share Data:
Loss per common share
  - basic and diluted    $  (0.10)   $  (0.48)   $  (0.28)   $  (1.05)

Weighted average
  common shares
  outstanding:
Basic and diluted          16,731       9,031      12,881       9,031