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ACTION AUTO RENTAL VOLUNTARILY SEEKS CHAPTER 11 REORGANIZATION

 SOLON, Ohio, Jan. 28 /PRNewswire/ -- Action Auto Rental, Inc. (NASDAQ: AXXN) voluntarily filed today for protection under the provisions of Chapter 11 of the Federal Bankruptcy Code. The filing was made with the U.S. Bankruptcy Court in Cleveland, Ohio.
 Craig E. Hons, President and Chief Executive Officer of Action, explained, "The filing was done so that we can continue to operate our ongoing business while giving us the time and forum necessary to develop a debt restructuring plan. Our offices are open. We are making every effort to obtain court protection for our employee salaries and benefits. Our goal is for Action to return to financial health and emerge from Chapter 11 as a strong industry competitor."
 Hons said that the voluntary action was initiated largely as a result of an impasse in debt restructure negotiations with General Motors Acceptance Corporation (GMAC) which filed litigation against Action in December to collect its debt of approximately $62 million. "It has always been our sincere desire to come to a consensual agreement with GMAC and keep this outside of the courts," he explained. "Naturally, we are disappointed that we have been unable to do so. Unfortunately, events of the past few days left us with no choice. GMAC has asked the courts to grant it control of our fleet, which would leave us with no viable way of conducting business. At this point, we feel that the protection of Chapter 11 is clearly in the best interest of our employees, vendors, stockholders and customers, and we are hopeful that we can reach agreements with GMAC and our other constituencies with respect to a restructuring of our company."
 Hons said that management has made tremendous progress to date in cutting the company's previous operating losses. "Our 1992 third quarter net loss was $974 thousand, an 85% reduction from losses of $6.5 million in the third quarter of 1991. We're making real progress on the operating side. Now, our primary task is to restructure the debt with GMAC and our other creditors."
 Hons stated that Action will be moving rapidly to explore both internal and external reorganization prospects, and has retained the services of Gordian Group, L.P. as its financial advisor in such matters. Interested investors or lenders can contact Peter Kaufman at 212-486-3600.
 Action Auto Rental serves the insurance replacement automobile rental market by providing short-term replacements to individuals who have lost the use of their vehicles through accident, theft or other causes. Headquartered in Solon, Ohio, Action operates 108 offices in 34 states and has 700 employees. Annual revenues in 1991 were $85.9 million. Action Auto shares are traded over the counter under the symbol AXXN.
 -0- 1/28/93
 /MEDIA ADVISORY: Craig Hons, President, will review a brief statement and be available to answer questions on a media conference call to be held this afternoon at 3 p.m. If you would like to participate, please notify Mark Kozel at the number listed below/
 /CONTACT: Mark Kozel, 216-349-1638; or Craig Hons, 216-349-4400; both of Action Auto Rental; or Kathleen Obert of Edward Howard & Co., 216-781-2400, for Action Auto Rental. Investor Relations Contact: Doug Fox of S.M. Berger, 216-464-6400, for Action Auto Rental/
 (AXXN)


CO: Action Auto Rental, Inc. ST: Ohio IN: AUT SU: BCY

KK -- CL012 -- 0257 01/28/93 12:17 EST
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Date:Jan 28, 1993
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