GAC enters into new credit agreement, issues subordinated notes to Conseco and announces operations restructuring and 1996 results.

BLOOMINGTON, Ind.--(BUSINESS WIRE)--April 15, 1997--

New Revolving Credit Agreement ______________________________

General Acceptance Corp. (NASDAQ:GACC) today announced that it has entered into a new revolving credit agreement with its primary lender.

The terms of the new agreement provide for a $70.0 million revolving line of credit subject to a maximum advance rate of 78 percent of eligible contracts receivable. The agreement expires Jan. 1, 1998, and carries an interest rate of one-month LIBOR plus 4.5 percent.

The agreement concludes a nearly 15-month period during which the company operated under default of its prior agreement with the lender. Management believes that the new agreement gives the company sufficient available lines of credit to fund its planned contract acquisition and origination activities throughout 1997.

Issuance of $10 Million Convertible Subordinated Notes ______________________________________________________

The company also announced that it issued $10.0 million in 12.0 percent convertible subordinated notes to an affiliate of Conseco, Inc. ("Conseco") in exchange for cash. Conseco is traded on the New York Stock Exchange under the symbol "CNC" (NYSE:CNC). The notes require the payment of interest only, are unsecured and mature on the third anniversary of issuance. The conversion feature of the notes is subject to approval by shareholders at the company's 1997 annual meeting. Subject to such approval, the notes would be convertible at any time into common stock of the company at a conversion price of $3.00 per share. Proceeds were used to reduce borrowings under the company's revolving line of credit.

The company welcomes this investment by Conseco. Management believes that the issuance of the notes, in conjunction with the new revolving credit agreement, will provide the company with sufficient liquidity to execute its strategy of building its portfolio of installment sale contracts and opening additional used vehicle dealerships in selected markets.

The terms of the agreements under which the notes were issued also provide Conseco with the right to control one-third of the company's board of directors and to appoint one person to act in an operations capacity for the company. Further, if Conseco makes a tender offer to all stockholders of the company prior to April 11, 1998, certain principal stockholders of the company may be required to tender a significant portion of shares held by them.

Concurrently with the issuance of these notes to Conseco, the company also issued $3.3 million in convertible subordinated notes to certain principal stockholders and their relatives in exchange for a like amount of 12.0 percent demand notes of the company held by them. These notes have terms identical to those issued to Conseco. If Conseco and the certain principal stockholders and their relatives each converted their notes to common stock of the company, Conseco would own approximately 32 percent of the total outstanding common stock of the company.

Operations Restructuring ________________________

The company also announced the closing of financing operations in several geographic areas and its plans to concentrate the majority of its resources on three principal markets: Indiana, Ohio and Florida. The company currently has a significant presence, has historically had good experience with credit quality and has long-standing dealer relationships in each of these states. Management believes focusing its operations on its principal markets will increase efficiency, reduce costs and improve its ability to successfully execute its business plan.

In connection with this plan, the company recently completed the sale of an additional $24.7 million of installment sale contracts on a non-recourse basis at 92.7 percent of net principal balance for cash proceeds of $22.9 million. As was the case with the company's previously announced sales, because these installment sale contracts were sold essentially for their carrying value, no material gain or loss was recorded in connection with their sale. Proceeds of the sale were used to reduce borrowings under the company's revolving line of credit. The company may make additional sales of installment sale contracts from time to time in connection with its plan to concentrate its resources in its principal markets.

1996 Results ____________

The company also reported results for the fourth quarter and year ended Dec. 31, 1996 in line with previously released estimates. The net loss for the year 1996 was ($9.1 million) compared to pro forma net income for the year 1995 of $717,000. The 1996 net loss included the establishment of a non-cash valuation reserve for deferred taxes of $4.7 million, which reduced net income on a dollar-for-dollar basis. Without the establishment of this reserve, the net loss for the year 1996 would have been ($4.4 million). On a per share basis, the net loss was ($1.51) for 1996, or ($0.73) without the deferred tax valuation reserve, compared to pro forma net income of 13 cents for 1995. As the company was an S Corporation until April 1995, net income for the year 1995 has been adjusted to reflect pro forma income taxes.

For the fourth quarter of 1996, the net loss was ($7.4 million) compared to a net loss of ($3.1 million) for the fourth quarter of 1995. The fourth quarter 1996 loss also includes the establishment of the $4.7 million non-cash valuation reserve for deferred taxes. Without the establishment of this reserve, the net loss for the fourth quarter 1996 would have been ($2.7 million). On a per share basis, the net loss for the fourth quarter of 1996 was ($1.23), or ($0.46) without the deferred tax valuation reserve, compared to a net loss for the fourth quarter of 1995 of ($0.51).

Total finance revenues for the year 1996 were $29.0 million compared to $25.2 million for the year 1995, an increase of 15.1 percent. Gross profit contribution from the company's used vehicle sales operations was $1.9 million for the year 1996 compared to $407,000 for the year 1995, an increase of 375.7 percent.

Results for the year 1996 include a provision for credit losses of $11.5 million compared to $6.9 million for the year 1995. Results for the fourth quarter of 1996 include a provision for credit losses of $3.9 million compared to $6.2 million for the fourth quarter of 1995. The company has taken additional steps in 1997 to further tighten credit standards and to increase the discount from face value at which it purchases installment loan contracts. This discount becomes part of the total reserves available for credit losses.

As of Dec. 31, 1996, the company's total reserves available for credit losses were $12.5 million. Of this amount, $4.2 million has been allocated to the $54.9 million in contracts receivable held for sale based on completed sales or sales negotiations in process. The remainder of the total reserves available for credit losses of $8.3 million has been allocated to contracts receivable to be retained by the company. For contracts receivable to be retained by the company, total reserves available for credit losses as a percentage of contracts receivable were 13.3 percent as of year end 1996, compared to 16.5 percent as of year end 1995. The company's contractual 60-day delinquency rate as of year end 1996 was 1.8 percent compared to 3.6 percent as of year end 1995.

The lower reserve percentage as of year end 1996 is believed by management to be adequate based on a number of factors, including the more seasoned composition of the company's portfolio as of year end 1996 compared to year end 1995, the lower delinquency rate as of year end 1996 compared to year end 1995 and the lower static pool loss experience on loans originated in 1996 compared to 1995.

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements about the sufficiency of the company's available lines of credit, liquidity requirements, increases in operating efficiency, reductions in operating costs and plans to sell installment sales contracts. These statements, and any other forward-looking statements contained herein, are subject to risks, including risks outside the company's control, that could cause results to vary materially from the statements set forth herein.

General Acceptance Corp. is a specialized consumer finance company principally engaged in purchasing and servicing installment sale contracts relating to the sale of used automobiles to consumers with limited access to traditional financing sources. The company acquires these contracts from used vehicle dealerships operated by the company as well as from unaffiliated dealers with whom the company has a formal business relationship. The company is headquartered in Bloomington, and has regional offices in Indiana, Ohio, Florida, New Jersey and Pennsylvania, and used vehicle dealerships in Indiana, Missouri, Ohio, Pennsylvania, Florida and Illinois.

The company's stock is traded on NASDAQ under the symbol "GACC." -0-

                      General Acceptance Corp.
              (In thousands, except per share amounts)

                   Condensed Statements of Income

                                               Year Ended
                                                Dec. 31,
                                           1996          1995(1)
                                         ________      ________
Finance revenues:
 Interest and discount                    $26,987       $23,638
 Ancillary products                         1,553         1,033
 Other                                        493           561
                                         ________      ________
Total finance revenues                     29,033        25,232

Net dealership revenues
 Sale of purchased and trade vehicles       8,055         3,077
 Cost of sales                             (6,687)       (2,900)
 Other                                        567           230
                                         ________      ________
Total net dealership revenues               1,935           407
                                         ________      ________
Total net revenues                         30,968        25,639

Expenses:
 Interest                                   9,084         6,382
 Provision for credit losses               11,525         6,898
 Operating expenses                        17,525        11,164
                                         ________      ________
Total expenses                             38,134        24,444
                                         ________      ________
Income (loss) before income tax            (7,166)        1,195
Income taxes                                1,915           478
                                         ________      ________
Net income (loss)                         $(9,081)      $   717
                                         ________      ________
                                         ________      ________
Net income (loss) per share               $ (1.51)      $  0.13
                                         ________      ________
                                         ________      ________
Weighted average shares outstanding         6,022         5,639
                                         ________      ________
                                         ________      ________

(1) Gives pro forma effect to income taxes as if the company's
S Corporation status had terminated Jan. 1, 1995.

                      Condensed Balance Sheets

                                         Dec. 31,      Dec. 31,
                                           1996          1995
                                         ________      ________
Contracts receivable:
 Held for investment                     $ 62,263      $129,867
 Held for sale                             54,868           ---
                                         ________      ________
                                          117,131       129,867
Allowance and discount available for
 credit losses                            (10,611)      (19,513)
                                         ________      ________
Contracts receivable, net                 106,520       110,354
Repossession inventory                      7,534         5,224
Other assets                                9,592         8,802
                                         ________      ________
Total assets                             $123,646      $124,380
                                         ________      ________
                                         ________      ________
Revolving line of credit                 $ 93,977      $ 94,165
Bank line of credit                         4,500           ---
Note payable to related party               1,000           ---
Accounts payable and accrued expenses       4,651         1,605
Dealer participation reserves available
 for credit losses                          1,855         1,866
Stockholders' equity                       17,663        26,744
                                         ________      ________
Total liabilities and stockholders'
 equity                                  $123,646      $124,380

CONTACT: General Acceptance Corp., Bloomington

Martin C. Bozarth, 812/337-6023