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AutoCorp Buys Six Dealerships

23 June 1998

AutoCorp Buys Six Dealerships

    PHOENIX, June 22 -- AutoCorp Equities, Inc.
(OTC Bulletin Board: ACOR) announced today the acquisition of six automobile
dealerships in Oklahoma, Texas and Arizona.  The acquisition consists of a
dealership group with three corporations, Jim Miles Auto Center, Inc. of
Oklahoma City, Oklahoma; Lenders Auto Resale Centers of Texas, Inc. of Austin,
Texas and Auto's Del Norte, Inc. of Peoria, Arizona which were purchased from
CIC Fund, V, Inc. in a $3.8 M deal for stock and debt.  The deal also includes
the right to purchase Jim Miles Chevrolet in Guthrie, Oklahoma in the future.
    The company expects to spin off two of its New Mexico and one of its
Arizona dealerships.  The resulting operations will consists of three Phoenix
area dealerships; four Austin dealerships and one Oklahoma City dealership
doing combined projected annualized sales revenue of $18 M.  The company owns
two dealership lots in Tucson, Arizona with expansion plans for the fall.
    Through its strategic alliance with Autoprime, Inc. of Dallas, Texas,
AutoCorp sells motor vehicles to customers who are primarily sub-prime credit
risks.  Autoprime is the principle sub-prime lending source used by AutoCorp.
The Lenders Auto Resale dealerships in Austin were selected by Autoprime in
October for a servicing agreement to service 1,200 vehicle contracts.
    The new Board of Directors consists of Jim Miles, William 0. Merritt,
Dennis W. Miller and Mark Shelley.