Chancellor Announces Grand Opening of Dallas Retail Sales Center.

BOSTON--(BUSINESS WIRE)--Sept. 16, 1999--

Chancellor Corporation (OTC BB:CHLR) announces today that its has opened its seventh retail sales center in Dallas, Texas. In May the Company announced with its operating results for the second quarter of 1999 that is was planning to open a seventh retail location prior to the end of the third quarter. The opening of the location in Dallas commences the Company's expansion into the Southwest and into more lucrative markets for used transportation equipment.

Rea Brookings, president of Tomahawk Trucks, stated: "We are pleased to be opening our seventh retail sales center, marking the Company's first venture into the Southwest. We expect the Dallas location to immediately contribute to the astounding revenue growth that we have been able to achieve. By entering the Dallas market we are preparing ourselves to bring a more 'national' presence to our centers. We are confident of and remain committed to our goal of growing this network to twenty retail sales centers within the next two to three years."

Franklyn E. Churchill, president and chief operating officer of Chancellor, commented: "This is an exciting and important step towards our goal of building our retail sales center network into a national franchise. The Dallas market will be pivotal in developing a presence in the Southwest region. The competitive advantage that these retail sales centers provide Chancellor is tremendous. We believe that we are able to compete at a very high level against some of the largest players in this industry. As we continue to grow this retail network, we look forward to be able to provide a high quality source of inventory to these centers through our leasing operations."

In addition to its newest retail sales center in Dallas, Texas, the Company also has retail sales centers located in Atlanta, Georgia; Elizabeth, New Jersey; Kansas City, Missouri; Orlando, Florida; Pompano Beach, Florida; and Richmond, Virginia. More specific information on the Company's retail sales center locations can be found on the Internet at http://www.tomahawktrucks.com, or by calling Tomahawk at [phone].

The Company's retail sales center network provides Chancellor with a significant competitive advantage with the ability to competitively price new lease contracts. The network also provides Chancellor with an immediate and more advantageous distribution channel for its high quality, off-lease transportation equipment inventory. The Company has plans to further expand its retail sales center presence as opportunities in targeted markets present themselves.

Chancellor Corporation is spearheading an evolution in transportation equipment finance through innovative financing and fleet management programs. The Company seeks to reduce a customer's total holding cost through its "Wholesale-Plus" lease pricing strategy and through other value-added services, including asset management, equipment maintenance, fuel management and data management strategies. Since its founding in 1977, Chancellor has completed a total of approximately $1.5 billion in equipment lease transactions for its Fortune 500 and middle market customers in the U.S. and select international markets. Chancellor is a transportation equipment finance and fleet management solutions provider headquartered in Boston. The Company's Internet address is http://www.chancellorcorp.com. The Company is publicly traded under the symbol "CHLR".

Chancellor is teaming up with The Jimmy Fund to fight children's cancer by sponsoring the 100K Chancellor Challenge road race. This inaugural event will be held Saturday, October 9, 1999. To learn more about Chancellor's work with the Jimmy Fund, participate in the race or make a donation to support this worthy cause, visit http://www.chancellorchallenge.org today! Together we can help!

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties, including, without limitation, demand and competition for the Company's lease financing services and the products to be leased by the Company, the continued availability to the Company of adequate financing the ability of the Company to recover its investment in equipment through remarketing, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings.