Global Debt Network, Inc. Launches GDNAuto at NIADA; First Nationwide Online Marketplace Helps Auto Dealers Boost Loan Portfolio Sales, Liquidity - and Profits

Business Wire,  June 25, 2008  

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GDNAuto Links Auto Dealerships With Investors Who Buy Loans

DALLAS -- Automobile dealerships that finance their customers' automobile purchases have a more efficient way to sell their seasoned loans to portfolio investors with the launch today of Global Debt Network Automotive (www.gdnauto.com) - the first nationwide online auto loan portfolio transaction platform. The GDNAuto platform debuts at the National Independent Automobile Dealers Association (NIADA) Convention at the Gaylord Texan Resort, here through June 28.

Developed and tested in collaboration with automobile dealers, dealer associations and portfolio buyers, GDNAuto is a powerful business tool that gives dealerships the ability to operate more efficiently, generate cash to fund operations when they need it and improve profitability. Dealerships that enroll in GDNAuto use an innovative dashboard-style control panel to list and price the loans they want to sell to pre-screened banks, credit unions and other investors. Using GDNAuto, dealers can review recent portfolio sales prices, set their preferred terms and monitor the status of the entire process - instantly. GDNAuto even helps dealers manage the due diligence paperwork and facilitates closing and funding - all within a confidential, secure environment.

"In this current economy, many dealers are seeking to sell their portfolios in order to free up critical funds for their dealership," said Larry Peters, executive vice president of the Florida Independent Auto Dealers Association. "Many of these same dealers have embraced technology and will find tremendous benefit in being able to securely market their portfolios online to qualified lenders and investors from the comfort of their office."

Banks, credit unions, hedge funds and other pre-qualified investors use their own secure GDNAuto control panel to specify the types of loans they want to buy. Investors can review dealership portfolios, select the loans they want and submit a bid for consideration. Once approved, GDNAuto expedites the due diligence process and tracks every aspect of closing and funding to ensure a seamless transaction. To date, 20 investors have registered to purchase loans and sellers have listed more than $3 million in auto loans available for purchase.

"GDNAuto provides auto dealerships and lenders what resembles a secondary market for auto loans," said Mike Sheridan, founder of Global Debt Network, Inc. and president of GDNAuto.

"The key to success for most independent auto dealers today is ongoing access to capital," Sheridan said. "GDNAuto makes it easy for dealers of any size to generate cash through better management of their receivables. Whether it's a portfolio of 50 loans or 500, GDNAuto helps dealers take care of all the details.

"Right now, most dealers sell loans once a quarter - not because that's when they want to sell loans or need cash but because most investors won't even look at fewer than 50 loans because of the time, energy and people resources required to complete the due diligence process," Sheridan explained. "GDNAuto eliminates much of the inefficiency inherent in the process, which means investors are more motivated to consider smaller loan pools or diversifying their investment portfolios by buying loans from dealerships anywhere in the country. We believe that providing an online venue where dealerships and lenders can do business - anywhere, anytime - is a tremendous benefit to everyone involved."

There is no cost to register as a member of GDNAuto. Portfolio sellers pay a per-loan transaction fee based on the number of years remaining until loan maturity. Portfolio buyers pay a transaction fee based on the dollar volume of the transaction plus an escrow fee that is waived for portfolio purchases above $500,000. For more information or to create a GDNAuto account, visit www.gdnauto.com or call 1-866-559-4339.

GDNAuto provides a secure online environment in which to share information and transact business. All participants are pre-screened to ensure that only qualified parties have access to the GDNAuto platform. Access is login and password protected, and transaction data are maintained within a secure document vault and stored on a secure dedicated server.

About Global Debt Network, Inc.

Based in California with offices in Alamo, Calif. and Los Angeles, Global Debt Network, Inc. is a privately held company that simplifies auto finance by offering GDNAuto, the first nationwide online loan portfolio marketplace where automobile dealers, banks, credit unions, hedge funds and other financial institutions can come together to securely evaluate, price, sell and purchase asset-backed debt.

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