AmeriCredit Corp. on Jan. 22 announced net income of $47.2 million, or $0.30 per share, for its second fiscal quarter ended Dec. 31, 2003. The company reported a net loss of $56.3 million, or $0.37 per share, for the same period a year earlier.

For the six months ended Dec. 31, 2003, AmeriCredit reported net income of $80.5 million, or $0.51 per share, versus earnings of $19.4 million, or $0.16 per share, for the six months ended Dec. 31, 2002.

Automobile loan purchases were $700.0 million for the second quarter of fiscal year 2004, compared to $745.1 million in the September quarter. This sequential change in new loan volume was in line with normal seasonal trends. Managed auto receivables totaled approximately $13.0 billion at Dec. 31, 2003.

Managed auto receivables 31-to-60 days delinquent were 7.5 percent of the portfolio at Dec.r 31, 2003, compared to 9.2 percent at Dec. 31, 2002, and 7.6 percent at Sept. 30, 2003. Accounts more than 60 days delinquent were 2.9 percent of the portfolio at Dec. 31, 2003, improved from 4.1 percent at Dec. 31, 2002, and unchanged compared to Sept. 30, 2003.

Effective for the quarter ended Dec. 31, 2003, AmeriCredit has revised its repossession charge-off policy. The company will now charge off accounts when the customers’ redemption period to reclaim a repossessed auto has expired. Previously, the company charged off accounts at the time that repossessed inventory was liquidated at auction.

To implement this new policy, AmeriCredit incurred additional charge-offs of $59.4 million at Dec. 31, 2003, related to the acceleration of charge-off timing, raising managed portfolio credit losses to $308.3 million from $248.9 million. This one-time cumulative adjustment changes the annualized charge-off rate for the December 2003 quarter to 9.1 percent, from 7.3 percent of the managed portfolio under the old policy. The annualized charge-off rate was 7.6 percent for the September 2003 quarter.

Going forward, the company forecasts that annualized charge-offs will decline to the 6.0 percent to 6.9 percent range during calendar year 2004.

AmeriCredit’s unrestricted cash balance totaled $524.8 million at Dec. 31, 2003, compared to $358.0 million at Sept. 30, 2003. The unrestricted cash balance increased primarily from $168.0 million in net proceeds the company received from its convertible senior note offering in November.

“The Company’s credit results showed improvement during the December quarter,” said Clifton Morris, chief executive officer of AmeriCredit. “Furthermore, we strengthened our balance sheet, and our liquidity will only get stronger as we start receiving a significant amount of cash from our old-FSA portfolio beginning later this year. So, with the economy improving and the successful execution of the company’s revised operating plan in 2003, AmeriCredit is now ready to move forward and begin to grow again.”

The company is adopting a flexible growth plan that will move its loan origination base to a target of $1 billion per quarter by the end of this fiscal year, with the goal of growing at a measured, deliberate pace averaging 10 to 15 percent annually thereafter.

“By slowing the decline in the portfolio balance in calendar year 2004, we can set the stage for portfolio and earnings growth in 2005,” said AmeriCredit President Dan Berce. “We are targeting high risk-adjusted returns and will maintain a strong balance sheet with more liquidity than we have carried in the past.”

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.

AmeriCredit will host a conference call for analysts and investors Jan. 22 at 5:30 p.m. Eastern Standard 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 at www.americredit.com/investors/conferencecalls.asp shortly after the call.

About AmeriCredit

AmeriCredit Corp. is an independent middle-market auto finance company.

Using its branch network and strategic alliances with auto groups and banks, the company purchases retail installment contracts entered into by auto dealers with consumers who are typically unable to obtain financing from traditional sources.

AmeriCredit has more than one million customers and approximately $13 billion in managed auto receivables. The company was founded in 1992 and is headquartered in Fort Worth, Texas.

For more information, visit www.americredit.com.