Credit Depot Corporation reports improved third quarter operating results.

GAINESVILLE, Ga.--(BUSINESS WIRE)--April 29, 1996--Credit Depot Corporation (NASDAQ:LEND) today reported improved results of operations for the quarter ending March 31, 1996. The Company had a net loss of $474,302 or $(.18) per share for the quarter, as compared to a net loss of $1,287,942 or $(.38) per share for the quarter ending March 31, 1995.

Revenues for the quarter were $1,138,190, compared with revenues of $537,558 reported for the same period a year ago. Through the nine months ended March 31, 1996, the Company reported a net loss of $2,759,236 or $(.90) per share compared to a loss of $3,062,462 or $(.91) for the nine months ended March 31, 1995.

Management noted the increase in revenue for the quarter resulted from "improved profit margins." Management elaborated by saying "The improvement in the profit margin is a result of the relationship Credit Depot has developed with a major loan securitizer under which Credit Depot has been selling loans to this entity for inclusion in a securitized mortgage transaction. These sales allowed the Company to participate in securitization profits, although at a lower profit margin than if the Company had completed its own securitization and acted as the servicer. While management is encouraged by the decline in losses, the losses have continued as a result of the limitations in generating loan volume which is primarily a result of the capital constraints on the Company. Addressing the Company's capital requirements to fund growth continues to be management's top priority."

In that regard, the Company announced that the $5,550,000 principal amount of Senior Subordinated Notes which were issued by the Company in 1994 became due on March 30, 1996. As part of its broader capital planning program, the Company is seeking financing to repay the Notes and is also discussing a restructuring of the Notes with certain of the holders. To date, the holders have advised the Company that they are forbearing taking action to enforce the Notes.

Credit Depot Corporation is a multi-state financial services company that provides residential, real estate financing to individuals unable to secure loans through conventional sources. The Company currently originates loans through its offices in Florida, Georgia, Indiana, North Carolina, Ohio, South Carolina, Tennessee, and Kentucky. These loans are collateralized by first mortgages, primarily on owner-occupied residential properties. -0-

                         Credit Depot Corporation
                            Financial Summary

                               Three Months Ended      Nine Months Ended
                                   March 31                March 31

                              1996         1995         1996         1995

Finance income and
 fees earned                $332,128      $62,721     $627,622     $504,782
Net gain on sale of
 receivables                $754,402     $449,540   $1,062,744     $835,307
Other income                 $51,600      $25,297      $77,968      $98,255
Income (loss) before
 income taxes              $(474,302) $(1,287,942) $(2,759,236) $(3,062,462)
Net income (loss)          $(474,302) $(1,287,942) $(2,759,236) $(3,062,462)
Average Shares Outstanding 3,378,761    3,378,761    3,378,761    3,378,761
Net income (loss)
 per share(a)                  $(.18)       $(.38)       $(.90)       $(.91)(a) After preferred stock dividends of $144,000 and $0 for the quarter ending March 31, 1996 and 1995, and $271,677 and $0 for the nine months ending March 31, 1996 and 1995, respectively.

CONTACT: Gerald F. Sullivan

Credit Depot

[phone]

or

John P. Kehoe/Van Negris

Kehoe, White, Savage & Co., Inc.

[phone]