Credit Acceptance Announces: Modified Dutch Auction Tender Offer

Credit Acceptance Corporation announced today that it has commenced a modified dutch auction tender offer to purchase up to 3,500,000 of its outstanding common stock at a price per share of $28.00 to $31.50. The tender offer will expire at 5:00 p.m., Eastern Standard Time, Tuesday, September 26, 2006, unless extended by Credit Acceptance. Tenders of shares must be made on or prior to the expiration of the tender offer and shares may be withdrawn at any time on or prior to the expiration of the tender offer. Credit Acceptance’s obligation to purchase is subject to the conditions set forth in the offer to purchase and letter of transmittal documents being sent to shareholders. The Company will be releasing operating results for the two months ended August 31, 2006, prior to the expiration of the tender offer.

Under the tender offer, shareholders of Credit Acceptance common stock will be invited to choose a price at which they are willing to sell their shares to Credit Acceptance, within the range of $28.00 to $31.50 per share. Credit Acceptance will then select the lowest single purchase price that will allow it to buy up to 3,500,000 shares of stock, or such lesser number of shares as are properly tendered and not withdrawn. All shares acquired in the tender offer will be purchased at the same purchase price regardless of whether the shareholder selected a lower price. If more than the maximum number of shares sought is tendered, tendering shareholders owning fewer than 100 shares will have their shares purchased without proration and all other shares will be purchased on a pro rata basis, subject to the conditional tender provisions described in the Offer to Purchase. Shareholders whose shares are purchased in the tender offer will be paid the purchase price net in cash, without interest, promptly after the expiration of the tender offer. Shareholders whose shares are not purchased in the tender offer will have their shares returned to them, free of charge, promptly after the expiration of the tender offer. The offer is not contingent upon any minimum number of shares being tendered.

Credit Acceptance anticipates that it will obtain all of the funds necessary to purchase shares tendered in the tender offer, and to pay related fees and expenses, from existing cash reserves and by borrowing under its $325 million revolving warehouse facility and its $135 million revolving credit facility. The tender offer is not conditioned upon the receipt of financing.

Donald Foss, the Company’s Chairman of the Board and majority shareholder, has indicated his non-binding intention to tender 20.0 million shares. If Mr. Foss tenders 20.0 million shares as he has indicated, the proration factor will be substantially impacted such that only a limited number of shares properly tendered by shareholders other than odd lot holders would be purchased and no shares conditionally tendered would be purchased. In addition, the price at which Mr. Foss tenders his shares would likely be the price at which Credit Acceptance purchases shares in the offer. Shares tendered at any price above the price chosen by Mr. Foss would not be purchased and shares tendered at or below the price chosen by Mr. Foss would be purchased on a pro rata basis. Mr. Foss is tendering this amount of shares because he does not want to increase his ownership percentage in the Company. One other officer of the Company has advised Credit Acceptance that he intends to tender shares in the offer. For further information, refer to the Offer to Purchase.

As of August 24, 2006, Credit Acceptance had 33,362,080 shares outstanding. The last reported sale price of Credit Acceptance’s common stock on the Nasdaq Global Market on August 25, 2006, which was the last trading day prior to the commencement of the offer, was $27.87 per share.