DEERFIELD, Ill.--(BUSINESS WIRE)--February 27, 1996--First Merchants Acceptance Corporation (Nasdaq: FMAC), a leading late model used car finance company, announced today that it has entered into a dealer agreement with CarMax: the Auto Superstore(R), a wholly-owned subsidiary of Circuit City Stores, Inc. CarMax: the Auto Superstore(R) is the nation's leading retailer of late model used cars and trucks, and the innovator of the used car superstore format.

First Merchants' President and Chief Executive Officer, Mitchell Kahn, commented, "We are very excited to be forming this relationship with CarMax(R). Working with one of the nation's leading retailers of late model used cars favorably positions First Merchants with respect to growing its finance contract portfolio. CarMax(R)'s Southeast locations complement our office network in the Southeast. Furthermore, the national expansion of CarMax(R) fits well with our coast-to-coast expansion plans, thereby creating a tremendous opportunity to jointly serve this fast growing used car market."

CarMax(R) operates four auto Superstores - Raleigh, North Carolina, Atlanta, Georgia and two in Richmond, Virginia. Additional locations will open this year in Charlotte, North Carolina, and Orlando and Tampa, Florida. Future markets currently under development include Dallas and Houston, Texas; Miami, Florida; and Washington, D.C./Baltimore, Maryland.

First Merchants also announced the opening of six new regional dealer service centers in Fresno and Sacramento, California; Indianapolis, Indiana; Boston, Massachusetts; Oklahoma City, Oklahoma; and Seattle, Washington. "With these new locations, First Merchants continues its nationwide market expansion and solidifies its coast-to-coast presence," said Mr. Kahn.

First Merchants Acceptance Corporation is a specialty finance company primarily engaged in financing the purchase of used automobiles for consumers who have limited access to traditional sources of credit. The Company acquires dealer-originated retail installment contracts from franchised and independent automobile dealers in 35 states. With the six openings announced today, First Merchants operates 42 regional dealer service centers located in Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Mississippi, Missouri, New Jersey, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia and Washington.