• 2nd quarter net loss of $19 million, $0.17 per share
  • Increased loan loss reserves through higher provision for loan losses
  • FY08 originations target reduced to $6.5 to $7.0 billion
  • FY08 earnings guidance updated
FORT WORTH, Texas, Jan. 22, 2008, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- AMERICREDIT CORP. (NYSE: ACF) today announced a net loss of $19 million, or $0.17 per share, for its second fiscal quarter ended December 31, 2007, versus earnings of $95 million, or $0.74 per share, for the same period a year earlier. For the six months ended December 31, 2007, AmeriCredit reported net income of $43 million, or $0.35 per share, versus earnings of $170 million, or $1.27 per share, for the six months ended December 31, 2006. Operating results include Long Beach Acceptance Corp. since its acquisition on January 1, 2007.

Net income for the three and six months ended December 31, 2006, included a $23 million after-tax gain ($36 million pre-tax), or $0.18 per share and $0.17 per share, respectively, related to the partial sale of AmeriCredit's investment in DealerTrack Holdings, Inc.

Automobile loan purchases increased to $1.80 billion for the three months ended December 31, 2007, compared to $1.74 billion for the same quarter last fiscal year. Loans purchased for the six months ended December 31, 2007, were $4.19 billion compared to $3.42 billion for the same period a year earlier. Managed receivables totaled $16.35 billion at December 31, 2007, compared to $12.58 billion at December 31, 2006.

Annualized net charge-offs totaled 6.9% of average managed receivables for the December 2007 quarter compared to 5.8% for the December 2006 quarter. For the six months ended December 31, 2007, annualized net charge-offs were 6.2% compared to 5.6% for the same period last year.

Managed receivables 31-to-60 days delinquent were 6.8% of the portfolio at December 31, 2007, compared to 6.7% at December 31, 2006. Accounts more than 60 days delinquent were 3.0% of the portfolio at December 31, 2007, compared to 2.6% a year ago.

"The December quarter was challenging on many fronts, with weaker credit performance and uncertainty in the capital markets. As a result, we have revised our operating plans to align our loan volume with available capital resources," said AmeriCredit President and Chief Executive Officer Dan Berce. "Over the next several months, we will bring our originations infrastructure and overhead into alignment with our revised originations target."

Regulation FD

Pursuant to Regulation FD, the Company provides its expectations regarding future business trends to the public via a press release or 8-K filing. The Company anticipates some risks and uncertainties with its business. The Company undertakes no obligations to update its expectations regarding future business trends.

The following net income and earnings per share forecasts and the related assumptions have been updated from guidance provided on October 24, 2007, to reflect changes in the Company's current business outlook.



    Net income and EPS forecast

                                        Revised                Previous
                                   Fiscal year ending      Fiscal year ending
                                     June 30, 2008           June 30, 2008
                                 -------------------      ------------------
    Net income ($ millions)              $170 - $195             $295 - $320

    Earnings per share                 $1.35 - $1.55           $2.30 - $2.50



The forecasts for fiscal year 2008 incorporate, but are not limited to, the following assumptions:

    - New loan origination volume of $6.5 to $7.0 billion;
    - Net interest margin of 10.5% to 11.0% of average receivables;
    - Operating expenses, excluding depreciation on leased vehicles, of 2.5%
      to 2.7% of the portfolio;
    - Credit losses of between 5.7% and 6.2%; and
    - Provision for loan losses as a percent of average receivables of
      between 5.8% and 6.3%.



AmeriCredit will host a conference call for analysts and investors today at 5:30 P.M. Eastern time. For a live Internet broadcast of this conference call, please go to the Company's Web site to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.

About AmeriCredit

AmeriCredit Corp. is a leading independent automobile finance company that provides financing solutions indirectly through auto dealers and directly to consumers in the United States and Canada. AmeriCredit has over one million customers and more than $16 billion in managed auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit http://www.americredit.com.

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties detailed from time to time in the Company's filings and reports with the Securities and Exchange Commission including the Company's annual report on Form 10-K for the year ended June 30, 2007. Such risks include -- but are not limited to -- variable economic conditions, adverse portfolio performance, volatile wholesale vehicle values, reliance on warehouse financing and capital markets, the ability to continue to securitize its loan portfolio, the continued availability of credit enhancement for its securitization transactions on acceptable terms, fluctuating interest rates, increased competition, regulatory changes, the high degree of risk associated with subprime borrowers, acquisition integration and exposure to litigation. These forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to Company management. Actual events or results may differ materially. It is advisable not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to, and does not, publicly update or revise any forward-looking statements, except as required by federal securities laws, whether as a result of new information, future events or otherwise.



    AmeriCredit Corp.
    Consolidated Statement of Operations
    (Unaudited, Dollars in Thousands, Except Per Share Amounts)

                           Three Months Ended         Six Months Ended
                              December 31,              December 31,
                       ------------------------  ------------------------
                            2007         2006         2007         2006
                       -----------  -----------  -----------  -----------
    Revenue:
      Finance charge
       income             $612,699     $502,217   $1,224,557     $986,574
      Other income          40,137       36,244       80,577       68,049
      Servicing income         418          979          794        8,438
      Gain on sale of
       equity investment         -       36,196            -       36,196
                       -----------  -----------  -----------  -----------
                           653,254      575,636    1,305,928    1,099,257
                       -----------  -----------  -----------  -----------
    Costs and expenses:
      Operating expenses   103,084       94,095      208,049      182,383
      Depreciation expense
       - leased vehicles     8,848            -       14,433            -
      Provision for loan
       losses              356,513      174,800      601,158      348,705
      Interest expense     214,033      155,860      425,294      299,331
      Restructuring charges   (163)          77         (293)         386
                       -----------  -----------  -----------  -----------
                           682,315      424,832    1,248,641      830,805
                       -----------  -----------  -----------  -----------
    (Loss) income before
      income taxes         (29,061)     150,804       57,287      268,452

    Income tax (benefit)
     provision              (9,971)      55,378       14,558       98,790
                       -----------  -----------  -----------  -----------
      Net (loss) income   $(19,090)     $95,426      $42,729     $169,662
                       ===========  ===========  ===========  ===========

    (Loss) earnings per
     share:
      Basic                 $(0.17)       $0.82       $ 0.37        $1.41
                       ===========  ===========  ===========  ===========

      Diluted               $(0.17)       $0.74       $ 0.35        $1.27
                       ===========  ===========  ===========  ===========

    Weighted average
     shares            114,253,706  115,834,752  114,933,806  120,518,553
                       ===========  ===========  ===========  ===========

    Weighted average
      shares and
      assumed incremental
      shares           114,253,706  130,153,556  127,505,633  134,935,826
                       ===========  ===========  ===========  ===========



    Consolidated Balance Sheets
    (Unaudited, Dollars in Thousands)

                       December 31,   June 30,   December 31,
                            2007        2007         2006
                       -----------  -----------  -----------

    Cash and cash
     equivalents          $567,087     $910,304     $897,386
    Finance receivables,
     net                15,436,986   15,102,370   11,857,385
    Restricted cash -
     securitization
     notes payable         994,336    1,014,353      865,591
    Restricted cash -
     credit facilities     175,971      166,884      149,173
    Property and equipment,
     net                    60,762       58,572       54,796
    Leased vehicles,
     net                   204,558       33,968            -
    Deferred income taxes  244,065      151,704       99,657
    Goodwill               212,595      208,435        8,914
    Other assets           252,952      164,430      180,358
                       -----------  -----------  -----------
      Total assets     $18,149,312  $17,811,020  $14,113,260
                       ===========  ===========  ===========

    Credit facilities   $2,479,400   $2,541,702   $2,400,881
    Securitization
     notes payable      12,368,081   11,939,447    8,907,498
    Senior notes           200,000      200,000            -
    Convertible debt       750,000      750,000      750,000
    Funding payable         49,666       87,474       56,484
    Accrued taxes and
     expenses              240,589      199,059      141,548
    Other liabilities       84,438       18,188       14,212
                       -----------  -----------  -----------
      Total liabilities 16,172,174   15,735,870   12,270,623
                       -----------  -----------  -----------

    Shareholders' equity 1,977,138    2,075,150    1,842,637
                       -----------  -----------  -----------
      Total liabilities
       and shareholders'
       equity          $18,149,312  $17,811,020  $14,113,260
                       ===========  ===========  ===========



    Consolidated Statements of Cash Flows
    (Unaudited, Dollars in Thousands)

                           Three Months Ended          Six Months Ended
                              December 31,                December 31,
                         ----------------------    ----------------------
                            2007         2006         2007         2006
                         ---------    ---------    ---------    ---------

    Cash flows from operating
     activities:
      Net (loss) income   $(19,090)     $95,426      $42,729     $169,662
      Adjustments to
       reconcile net (loss)
       income to net cash
       provided by operating
       activities:
        Depreciation and
         amortization       20,505       13,419       37,460       19,497
        Accretion and
         amortization
         of fees             5,904       (6,472)      10,592      (13,959)
        Provision for loan
         losses            356,513      174,800      601,158      348,705
        Deferred income
         taxes             (87,740)     (43,370)     (63,211)          42
        Stock-based
         compensation
         expense             5,520        5,435       12,552        9,321
        Gain on sale of
         available for sale
         securities              -      (36,196)           -      (36,196)
        Other                  447         (166)         885       (3,509)
      Changes in assets
       and liabilities:
        Other assets       (41,594)      39,127      (80,651)       3,305
        Accrued taxes
         and expenses       77,065       28,699       36,255       (9,829)
                         ---------    ---------    ---------    ---------
    Net cash provided by
     operating activities  317,530      270,702      597,769      487,039
                         ---------    ---------    ---------    ---------
    Cash flows from
     investing activities:
      Purchase of
       receivables      (1,835,876)  (1,950,000)  (4,126,287)  (3,740,828)
      Principal
       collections and
       recoveries on
       receivables       1,534,023    1,300,174    3,119,836    2,631,281
      Distributions from
       gain on sale
       Trusts                7,293       16,692        7,466       92,709
      Purchases of property
       and equipment        (3,841)      (1,937)      (6,718)      (3,001)
      Net purchases of
       leased vehicles     (40,837)           -     (172,550)          -
      Proceeds from sale
       of available
       for sale securities       -       44,300            -       44,300
      Net change in
       restricted cash
       and other           199,566    1,092,985        3,322      (11,812)
                         ---------    ---------    ---------    ---------
    Net cash (used)
     provided by
     investing activities (139,672)     502,214   (1,174,931)    (987,351)
                         ---------    ---------    ---------    ---------
    Cash flows from
     financing activities:
      Net change in
       credit facilities   267,361      429,786      (66,096)     294,599
      Net change in
       securitization
       notes payable      (514,863)  (1,174,637)     425,464      386,773
      Proceeds from
       issuance of
       convertible debt        -            -             -       497,376
      Repurchase of
       common stock            -            -       (127,901)    (323,964)
      Proceeds from issuance
       of common stock       3,347       29,206       13,546       43,226
      Other net changes     (3,695)       1,406      (12,759)     (11,393)
                         ---------    ---------    ---------    ---------
    Net cash (used)
     provided
     by financing
     activities           (247,850)    (714,239)     232,254      886,617
                         ---------    ---------    ---------    ---------
    Net (decrease)
     increase in
     cash and cash
     equivalents           (69,992)      58,677     (344,908)     386,305
    Effect of Canadian
     exchange rate changes
     on cash and cash
     equivalents                 9       (2,058)       1,691       (2,159)
    Cash and cash
     equivalents
     at beginning of
     period                637,070      840,767      910,304      513,240
                         ---------    ---------    ---------    ---------
    Cash and cash
     equivalents
     at end of period     $567,087     $897,386     $567,087     $897,386
                         =========    =========    =========    =========



    Other Financial Data
    (Unaudited, Dollars in Thousands)

                            Three Months Ended        Six Months Ended
                               December 31,              December 31,
                        ------------------------  ------------------------
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------


    Origination volume  $1,804,719   $1,740,767   $4,185,936   $3,424,736
    Loans securitized    1,025,651      601,800    3,713,833    2,975,741

    Average on-book
     receivables       $16,409,662  $12,392,922  $16,298,629  $12,173,441
    Average gain on
     sale receivables        6,462       58,069       14,137      181,432
                        -----------  -----------  -----------  -----------
    Average managed
     receivables       $16,416,124  $12,450,991  $16,312,766  $12,354,873
                        ===========  ===========  ===========  ===========

                        December 31,   June 30,   December 31,
                           2007         2007         2006
                        -----------  -----------  -----------

    On-book
     receivables       $16,352,204  $15,922,458  $12,548,925
    Gain on sale
     receivables                 -       24,091       34,083
                        -----------  -----------  -----------
    Managed
     receivables       $16,352,204  $15,946,549  $12,583,008
                        ===========  ===========  ===========

                            Three Months Ended        Six Months Ended
                               December 31,              December 31,
                        ------------------------  ------------------------
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------

    Operating expenses    $103,084      $94,095     $208,049     $182,383
                        ===========  ===========  ===========  ===========

    Annualized operating
     expenses as a
     percent of average
     managed receivables       2.5%         3.0%         2.5%         2.9%
                        ===========  ===========  ===========  ===========
    Tax rate                  34.3%        36.7%        25.4%        36.8%
                        ===========  ===========  ===========  ===========

                        December 31,   June 30,   December 31,
                            2007         2007         2006
                        -----------  -----------  -----------

    Loan delinquency:
      On-book:
      (% of ending on-book
       receivables)
        31 - 60 days           6.8%         4.7%         6.7%
        Greater than 60 days   3.0          2.1          2.6
                        -----------  -----------  -----------
          Total                9.8%         6.8%         9.3%
                        ===========  ===========  ===========

    Managed portfolio:
    (% of ending managed
     receivables)
        31 - 60 days           6.8%         4.7%         6.7%
        Greater than 60 days   3.0          2.1          2.6
                        -----------  -----------  -----------
          Total                9.8%         6.8%         9.3%
                        ===========  ===========  ===========



                              Three Months Ended         Six Months Ended
                                 December 31,              December 31,
                        ------------------------   -------------------------
                              2007         2006         2007         2006
                        -----------  -----------   -----------   -----------
    Contracts receiving
     a payment deferral as
     an average quarterly
     percentage of average
     receivables
     outstanding:
      On-book (% of average
       on-book receivables)    6.8%         6.8%         6.4%         6.5%
                        ===========  ===========   ===========   ===========
      Managed portfolio
      (% of average managed
      receivables)             6.8%         6.7%         6.4%         6.5%
                        ===========  ===========   ===========   ===========

                             Three Months Ended         Six Months Ended
                                December 31,              December 31,
                        ------------------------   -------------------------
                              2007         2006         2007         2006
                        -----------  -----------   -----------   -----------
    Net charge-offs:
      On-book             $286,146     $183,153     $506,137     $345,017
                        ===========  ===========   ===========   ===========

      Managed portfolio:  $286,162     $183,437     $506,175     $349,833
                        ===========  ===========   ===========   ===========

    Annualized net
     charge-offs as a
     percent of average
     receivables:
      On-book                  6.9%         5.9%         6.2%         5.6%
                        ===========  ===========   ===========   ===========

      Managed portfolio:       6.9%         5.8%         6.2%         5.6%
                        ===========  ===========   ===========   ===========

    Annualized net
     recoveries as a
     percent of gross
     repossession
     charge-offs:
      On-book                 43.9%        48.8%        46.0%        48.8%
                        ===========  ===========   ===========   ===========

      Managed portfolio:      43.9%        48.8%        46.1%        48.7%
                        ===========  ===========   ===========   ===========

                        December 31,   June 30,    December 31,
                           2007         2007          2006
                        -----------  -----------   -----------
    On-book receivables:
      Principal        $16,352,204  $15,922,458  $12,548,925
      Allowance for
       loan losses and
       nonaccretable
       acquisition fees   (915,218)    (820,088)    (691,540)
                        -----------  -----------   -----------
                       $15,436,986  $15,102,370  $11,857,385
                        ===========  ===========   ===========
    Allowance as a
     percentage of
     on-book receivables       5.6%         5.2%         5.5%
                        ===========  ===========   ===========



    The Company's net margin as reflected on the consolidated statement of
    operations is as follows:

                            Three Months Ended         Six Months Ended
                               December 31,              December 31,
                         -----------------------   -----------------------
                            2007         2006         2007         2006
                         ----------   ----------   ----------   ----------

    Finance charge
     income              $ 612,699    $ 502,217   $1,224,557    $ 986,574
    Other income            40,137       36,244       80,577       68,049
    Interest expense      (214,033)    (155,860)    (425,294)    (299,331)
                         ----------   ----------   ----------   ----------
      Net margin         $ 438,803    $ 382,601     $879,840    $ 755,292
                         ==========   ==========   ==========   ==========

                            Three Months Ended         Six Months Ended
                               December 31,              December 31,
                         -----------------------   -----------------------
                            2007         2006         2007         2006
                         ----------   ----------   ----------   ----------

    Finance charge income     14.8%        16.1%        14.9%        16.1%
    Other income               1.0          1.1          1.0          1.1
    Interest expense          (5.2)        (5.0)        (5.2)        (4.9)
                         ----------   ----------   ----------   ----------
      Annualized net margin
       as a percent of
       average on-book
       receivables            10.6%        12.2%        10.7%        12.3%
                         ==========   ==========   ==========   ==========



The following table provides additional information for comparative purposes related to the Company's acquisition of Long Beach Acceptance Corp. ("LBAC") on January 1, 2007:


                             Three Months Ended        Six Months Ended
                              December 31, 2007        December 31, 2007
                             ------------------        ------------------
                            Total                     Total
                           Company                   Company
                          Excluding                 Excluding
                            LBAC         Total        LBAC         Total
                         ----------   ----------   ----------   ----------

    Origination volume  $1,601,136   $1,804,719   $3,710,118   $4,185,936

    Average managed
     receivables       $14,333,313  $16,416,124  $14,236,416  $16,312,766

    Net charge-offs       $262,521     $286,162     $465,898     $506,175

    Annualized net
     charge-offs as a
     percent of average
     receivables               7.3%         6.9%         6.5%         6.2%
                         ==========   ==========   ==========   ==========

    Contracts receiving
     a payment
     deferral as an
     average quarterly
     percentage of
     average receivables
     outstanding               7.3%         6.8%         6.9%         6.4%
                         ==========   ==========   ==========   ==========

    Net margin            $409,661     $438,803     $818,112     $879,840
                         ==========   ==========   ==========   ==========

    Annualized net margin
     as a percent of
     average on-book
     receivables              11.3%        10.6%        11.4%        10.7%
                         ==========   ==========   ==========   ==========

                              December 31, 2007
                              -----------------
                            Total
                           Company
                          Excluding
                            LBAC         Total
                         ----------   ----------

    Managed
     receivables       $14,276,457  $16,352,204

    Loan delinquency:
    (% of ending managed
     receivables)
      31 - 60 days             7.0%         6.8%
      Greater than 60 days     3.2          3.0
                         ----------   ----------
        Total                 10.2%         9.8%
                         ==========   ==========

    Allowance as a
     percentage of
     on-book receivables       5.9%         5.6%
                         ==========   ==========



     Contact:

     Investor Relations          Media Relations
     Caitlin DeYoung             John Hoffmann
     (817) 302-7394              (817) 302-7627

SOURCE AMERICREDIT CORP.