AmeriCredit to Acquire Competing Subprime Auto Lender

AmeriCredit Corp. today announced a definitive agreement for its operating subsidiary, AmeriCredit Financial Services, Inc., to acquire all of the outstanding capital stock of Long Beach Acceptance Corp. (LBAC). LBAC is the auto finance subsidiary of ACC Capital Holdings. The acquisition is an all-cash transaction that values LBAC at $282.5 million.

Long Beach Acceptance Corp. provides automobile financing to customers with near-prime credit scores by acquiring retail installment contracts from auto dealers in 34 states. As of Sept. 30, 2006, it had approximately $1.7 billion in managed auto receivables. The Company was founded in 1995 and is headquartered in Paramus, N.J., with a western regional office in Orange, Calif.

"AmeriCredit is committed to offering auto dealers and consumers a full spectrum of auto finance solutions, and the acquisition of Long Beach Acceptance Corp. allows us to add near-prime-quality business to our product mix," says AmeriCredit President and Chief Executive Officer Dan Berce. "With Long Beach's expertise in the near-prime market — combined with AmeriCredit's experience in the subprime market and our Bay View Acceptance prime lending product — we now have the ability to serve customers at any point along the credit spectrum."

Long Beach Acceptance Corp. will operate as a standalone subsidiary of AmeriCredit and will continue to be led by its President and Chief Executive Officer, Stephen Prough.

"We are very pleased to be joining a well-capitalized and growing company like AmeriCredit. Like Long Beach, AmeriCredit is solely focused on auto finance, and we look forward to working with them to deliver a full spectrum of financing solutions to auto dealers and their customers," Prough says.

The acquisition of Long Beach Acceptance Corp. is part of AmeriCredit's plan to grow the Company, build franchise value and further utilize excess capital in ways that are complementary and supportive of the Company's core business.

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