• 1st Quarter net loss of $1.7 million, $0.01 per share
  • Pre-tax earnings of $412,000
  • Allowance for loan losses increased to 6.8% of outstanding receivables

FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 27, 2008--AMERICREDIT CORP. (NYSE: ACF) today announced a net loss of $1.7 million, or $0.01 per share, for its fiscal first quarter ended September 30, 2008. AmeriCredit reported net income of $61.8 million, or $0.49 per share, for the same period a year earlier.

The allowance for loan losses as a percentage of finance receivables increased to 6.8% at September 30, 2008, from 6.3% at June 30, 2008.

Originations were $579.3 million for the quarter ended September 30, 2008, compared to $2.4 billion for the same quarter last fiscal year. Finance receivables totaled $14.1 billion at September 30, 2008, compared to $16.4 billion at September 30, 2007.

Annualized net charge-offs totaled 7.3% of average finance receivables for the quarter ended September 30, 2008, compared to 5.4% for the quarter ended September 30, 2007.

Finance receivables 31-to-60 days delinquent were 7.4% of the portfolio at September 30, 2008, compared to 5.5% at September 30, 2007. Accounts more than 60 days delinquent were 3.6% of the portfolio, compared to 2.6% a year ago.

Unrestricted cash was $243.8 million at September 30, 2008, excluding $112.3 million of investment in The Reserve Primary Money Market Fund, which has been reclassified to Investment in money market fund due to the fund's temporary suspension of distributions. The Company has additional liquidity of approximately $150 million from borrowing capacity on unpledged eligible receivables at September 30, 2008. During the September 2008 quarter, AmeriCredit retired $114.7 million of its 1.75% convertible notes. Book value was $16.49 per share at September 30, 2008.

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 across the United States. AmeriCredit has over one million customers and approximately $14 billion in auto receivables. The Company was founded in 1992 and is headquartered in Fort Worth, Texas. For more information, visit 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, 2008. 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, 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
                                                    September 30,
                                               -----------------------
                                                  2008        2007
                                               ----------- -----------
Revenue:
    Finance charge income                         $533,973    $611,858
    Other income                                    32,070      40,816
                                               ----------- -----------
                                                   566,043     652,674
                                               ----------- -----------
Costs and expenses:
    Operating expenses                              84,255     104,965
    Leased vehicles depreciation                    10,914       5,585
    Provision for loan losses                      274,865     244,645
    Interest expense                               195,046     211,261
    Restructuring charges                              551       (130)
                                               ----------- -----------
                                                   565,631     566,326
                                               ----------- -----------

Income before income taxes                             412      86,348

Income tax provision                                 2,074      24,529
                                               ----------- -----------

    Net (loss) income                             ($1,662)     $61,819
                                               =========== ===========

(Loss) earnings per share:
    Basic                                          ($0.01)      $ 0.53
                                               =========== ===========

    Diluted                                        ($0.01)       $0.49
                                               =========== ===========

Weighted average shares                        116,271,119 115,550,318
                                               =========== ===========

Weighted average shares and
    assumed incremental shares                 116,271,119 128,111,826
                                               =========== ===========


Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)

                           September 30,    June 30,     September 30,
                               2008           2008           2007
                           -------------  -------------  -------------
Cash and cash equivalents    $   243,752    $   433,493    $   637,070
Finance receivables, net      13,102,726     14,030,299     15,532,786
Restricted cash -
 securitization notes
 payable                         915,694        982,670        994,813
Restricted cash - credit
 facilities                      190,619        259,699        374,378
Property and equipment,
 net                              52,992         55,471         58,717
Leased vehicles, net             198,606        210,857        169,701
Deferred income taxes            317,444        317,319        239,812
Goodwill                               -              -        209,417
Investment in money market
 fund                            112,346              -              -
Other assets                     237,224        257,402        211,529
                           -------------  -------------  -------------
    Total assets             $15,371,403    $16,547,210    $18,428,223
                           =============  =============  =============

Credit facilities            $ 2,990,427    $ 2,928,161    $ 2,212,780
Securitization notes
 payable                       9,289,957     10,420,327     12,881,613
Senior notes                     200,000        200,000        200,000
Convertible debt                 635,349        750,000        750,000
Funding payable                   16,051         21,519         70,438
Accrued taxes and expenses       217,631        216,387        265,435
Other liabilities                104,555        113,946         37,564
                           -------------  -------------  -------------
    Total liabilities         13,453,970     14,650,340     16,417,830
                           -------------  -------------  -------------

Shareholders' equity           1,917,433      1,896,870      2,010,393
                           -------------  -------------  -------------
    Total liabilities and
     shareholders' equity    $15,371,403    $16,547,210    $18,428,223
                           =============  =============  =============


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

                                                 Three Months Ended
                                                    September 30,
                                               -----------------------
                                                  2008        2007
                                               ----------- -----------
Cash flows from operating activities:
  Net (loss) income                               ($1,662)     $61,819
  Adjustments to reconcile net (loss) income
   to
    net cash provided by operating activities:
    Depreciation and amortization                   25,885      16,955
    Accretion and amortization of fees               6,995       4,688
    Provision for loan losses                      274,865     244,645
    Deferred income taxes                          (3,166)      24,529
    Stock-based compensation expense                 3,894       7,032
    Amortization of warrants                        12,348           -
    Other                                            2,676         438
  Changes in assets and liabilities:
    Other assets                                     1,417    (39,057)
    Accrued taxes and expenses                       6,960    (40,810)
                                               ----------- -----------
Net cash provided by operating activities          330,212     280,239
                                               ----------- -----------

Cash flows from investing activities:
  Purchase of receivables                        (586,647) (2,290,411)
  Principal collections and recoveries on
   receivables                                   1,213,444   1,585,813
  Purchases of property and equipment                (855)     (2,877)
  Net purchases of leased vehicles                       -   (131,713)
  Investment in money market fund                (115,821)           -
  Net change in restricted cash and other          153,558   (196,071)
                                               ----------- -----------
Net cash provided (used) by investing
 activities                                        663,679 (1,035,259)
                                               ----------- -----------

Cash flows from financing activities:
  Net change in credit facilities                   67,013   (333,457)
  Net change in securitization notes payable   (1,130,862)     940,327
  Repurchase of common stock                             -   (127,901)
  Proceeds from issuance of common stock                14      10,199
  Retirement of convertible debt                 (114,048)           -
  Other net changes                                (6,348)     (9,064)
                                               ----------- -----------
Net cash (used) provided by financing
 activities                                    (1,184,231)     480,104
                                               ----------- -----------

Net decrease in cash and
  cash equivalents                               (190,340)   (274,916)
Effect of Canadian exchange rate changes on
  cash and cash equivalents                            599       1,682
Cash and cash equivalents at beginning of
 period                                            433,493     910,304
                                               ----------- -----------
Cash and cash equivalents at end of period        $243,752    $637,070
                                               =========== ===========


Other Financial Data
(Unaudited, Dollars in Thousands)

                                Three Months Ended
                                  September 30,
                           ----------------------------
                               2008           2007
                           -------------  -------------
Origination volume              $579,290     $2,381,217
Loans securitized                      -      2,688,182
Average finance
 receivables                 $14,544,922    $16,188,641


                           September 30,    June 30,     September 30,
                               2008           2008           2007
                           -------------  -------------  -------------
Finance receivables:
   Principal                 $14,062,845    $14,981,412    $16,377,528
   Allowance for loan
    losses and
        nonaccretable
         acquisition fees      (960,119)      (951,113)      (844,742)
                           -------------  -------------  -------------
                             $13,102,726    $14,030,299    $15,532,786
                           =============  =============  =============
   Allowance as a
    percentage of
        finance
         receivables                6.8%           6.3%           5.2%
                           =============  =============  =============


                           September 30,    June 30,     September 30,
                               2008           2008           2007
                           -------------  -------------  -------------
Loan delinquency as % of
 ending
   finance receivables:
       31 - 60 days                 7.4%           6.0%           5.5%
       Greater than 60
        days                         3.6            2.9            2.6
                           -------------  -------------  -------------
            Total                  11.0%           8.9%           8.1%
                           =============  =============  =============


                                Three Months Ended
                                  September 30,
                           ----------------------------
                               2008           2007
                           -------------  -------------
Contracts receiving a
 payment
  deferral as an average
   quarterly
  percentage of average
   finance
  receivables outstanding           7.3%           6.0%

Net charge-offs                 $265,859       $220,013

Annualized net charge-offs
 as a
  percent of average
   finance
  receivables                       7.3%           5.4%

Net recoveries as a
   percent of gross
    repossession
   charge-offs                     41.6%          48.8%


Components of net margin:
                                Three Months Ended
                                  September 30,
                           ----------------------------
                               2008           2007
                           -------------  -------------
Finance charge income           $533,973       $611,858
Other income                      32,070         40,816
Interest expense               (195,046)      (211,261)
                           -------------  -------------
    Net margin                  $370,997       $441,413
                           =============  =============


Annualized net margin as a
 percentage of average
 finance receivables:

                                Three Months Ended
                                  September 30,
                           ----------------------------
                               2008           2007
                           -------------  -------------
Finance charge income              14.5%          15.0%
Other income                         0.9            1.0
Interest expense                   (5.3)          (5.2)
                           -------------  -------------
    Net margin                     10.1%          10.8%
                           =============  =============


                                Three Months Ended
                                  September 30,
                           ----------------------------
                               2008           2007
                           -------------  -------------
Operating expenses               $84,255       $104,965
                           =============  =============
Annualized operating
 expenses as a
   percent of average
    finance
   receivables                      2.3%           2.6%
                           =============  =============

CONTACT: AmeriCredit Corp.
Caitlin DeYoung, 817-302-7394

SOURCE: AmeriCredit Corp.