Credit Depot announces improved fiscal 1997 first quarter results; revenues increase sharply; net loss narrows.

GAINESVILLE, Ga.--(BUSINESS WIRE)--Nov. 14, 1996--Credit Depot Corporation (Nasdaq: LEND) today announced financial results for the fiscal 1997 first quarter ended September 30, 1996.

For the three months ended September 30, 1996, revenues increased sharply to $1,383,712 from $439,976 a year ago. Net loss for the quarter narrowed to $274,193, or $0.12 per share, from a net loss of $913,856, or $0.27 per share, recorded in the similar period a year ago.

The improvement in operating results in the fiscal 1997 first quarter reflects principally an increase in loan originations of approximately 51% from the fiscal 1996 fourth quarter and 109% from the fiscal 1996 first quarter, reflecting the impact of the Company's recently expanded marketing programs. Finance income and fees earned in the fiscal 1997 first quarter increased by 41.8% to $151,296 from $106,663 in the fiscal 1996 first quarter, primarily as a result of an increase in the Company's average loan portfolio. Gains on sales of mortgage loans in the 1997 fiscal year sharply increased to $1,266,054 from $303,860 in the 1996 fiscal first quarter due to the increased volume of loan sales.

Gerald F. Sullivan Sr., President and Chief Executive Officer, stated: "We are pleased by our results for the fiscal 1997 first quarter, which are running substantially in line with the Company's operating plan and reflect the initial impact of our improved financial foundation on loan originations and our newly expanded marketing force.

"We recently announced an agreement to offer for sale $125 million of sub-prime first mortgage residential loans to a large national financial institution which will be included in a larger securitized loan pool. This agreement is an important step in Credit Depot's overall financing strategy. It provides us with additional liquidity and operating flexibility to capitalize on the growth opportunities in the residential real estate financing market. As part of the strengthening of our management team, in September, we recruited Ralph DeBee as Vice President of Underwriting."

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, Kentucky, North Carolina, Ohio, South Carolina, and Tennessee. These loans are collateralized by mortgages, primarily on owner-occupied residential properties.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release regarding matters that are not statements of historical fact, including statements relating to plans, strategies, expectations and future economic results, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the statements made, as a result of various factors, including risks associated with the Company's mortgage loan investments, such as the risks of defaults on mortgage loans, economic and other factors which impact real estate values and prevailing interest rates, the Company's ability to originate a sufficient volume of mortgage loans, the Company's ability to resell the mortgage loans in the secondary market, and other factors which are listed from time to time in the Company's Securities and Exchange Commission filings. -0-

                         Credit Depot Corporation
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                           (Unaudited)

                                     Three Months Ended
                                        September 30,
                                   1996             1995
Revenues:
 Finance income and
  fees earned                  $  151,296       $  106,663
 Gain on sale of receivable     1,266,054          303,860
 Other                            (33,638)          29,453

 Total Revenues                 1,383,712          439,976

Expenses:
 Salaries and employee benefits   745,687          623,378
 Legal and professional fees       96,711          108,044
 Other operating expenses         486,256          412,983
 Provision for credit losses       20,000           50,000
 Interest expense and
  amortization of financing
  costs                           309,251          159,427

Total Expenses                  1,657,905        1,353,832

Loss before provision for
 income taxes                    (274,193)        (913,856)
Provision for income taxes           -               -

Net loss                       $ (274,193)      $ (913,856)

Net loss per share of
 common stock                  $     (.12)      $     (.27)

Weighted average shares
 outstanding                    3,378,761        3,378,761

CONTACT: Credit Depot Corporation, Gainesville

Gerald F. Sullivan/Charles Farrahar

[phone]

or

Kehoe, White, Savage & Company, Inc.

John P. Kehoe/Van Negris

[phone]