Consumer Portfolio Services, Inc. to Acquire TFC Enterprises.

Business Editors

IRVINE, Calif.--(BUSINESS WIRE)--April 1, 2003

Consumer Portfolio Services Inc. (Nasdaq: CPSS) today announced it has signed an agreement to acquire TFC Enterprises, Inc. (Nasdaq: TFCE) and its subsidiaries in a cash merger. CPS has agreed to pay $1.87 per share for each of the approximately 11.6 million outstanding shares of TFC Enterprises stock.

The boards of both companies have approved the agreement. The transaction is subject to approval by the stockholders of TFC Enterprises and other conditions, and is expected to be completed in May 2003.

TFC holds approximately $160 million of automotive receivables. It has recently been purchasing such receivables at the rate of approximately $7 million per month.

CPS stated that it does not expect to borrow money to fund the acquisition, paying the purchase price with a combination of cash on hand and cash from operations.

"We are pleased with this acquisition. TFC's collection and origination platforms should be a strong and complementary fit with our existing business," said Charles E. Bradley, Jr., president and CEO of Consumer Portfolio Services. "We look forward to working with the experienced management team of TFC."

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services purchases, sells and services retail installment sales contracts originated predominantly by franchised dealers for new and late model used cars. Through dealers under contract across the United States, the company finances automobile purchases by consumers with subprime credit.

About TFC Enterprises, Inc.

TFC Enterprises, Inc. conducts its operations primarily through THE Finance Company, a wholly-owned subsidiary, which specializes in financing purchases of automobiles by consumers with sub-prime credit. Based in Norfolk, Virginia, TFC Enterprises, Inc. has contract production offices of THE Finance Company throughout the United States.

Pursuant to the Private Securities Litigation Reform Act of 1995, this paragraph identifies certain information contained herein as being "forward-looking" within the meaning of said act, and provides cautionary statements identifying important factors that could cause actual results to differ materially from those in the forward-looking statements. The statement that the transaction is expected to close in May 2003 is forward-looking. The transaction may not close in May 2003, or at all, if shareholders of TFC Enterprises, Inc. do not approve the transaction, if consents of certain lenders to TFC are not obtained, or if consent of the senior lender to CPS is not obtained. The statement that TFC holds $160 million of receivables may be deemed a forward-looking statement to the effect that such amount will be realized through collection of such contract receivables. The stated amount represents the carrying value of outstanding receivables on the books of TFC. Failure of the consumer obligors to pay consistently with past practice, due to changes in economic conditions or otherwise, could cause such figure to be overstated. The statement that TFC has recently acquired receivables at the rate of $7 million per month should not give rise to the implication that it will continue to do so, but to the extent such an inference is drawn, it would be a forward-looking statement, and could be affected by capital and liquidity constraints before or after the intended merger, or by strategic decisions to focus on different sectors of the consumer finance market. The statement that CPS does not intend to borrow money to fund the acquisition is forward-looking, and could be affected by the level of cash releases from CPS's existing securitized pools, and by the liquidity of TFC.