CHERRY HILL, N.J. — Subprime lender Pelican Auto Finance
recently received an initial equity investment from funds affiliated with
private equity firm Flexpoint Ford.

Officials said Flexpoint Ford also has been granted the
option to invest up to $50 million in the aggregate in Pelican. 

As an indirect, deep subprime automotive lender, Pelican
provides auto financing solutions for both franchise and independent dealers in
the Mid-Atlantic region as well as in Texas.

Pelican chief executive officer Troy Cavallaro highlighted
the investment by Flexpoint Ford establishes Pelican as an important auto
finance resource for its dealer clients.
Cavallaro explained Pelican provides dealers with a competitive choice
to finance deep subprime borrowers, including those with no credit, very low
FICO scores, or a previous bankruptcy, repossession or foreclosure.

"The Pelican management team is thrilled to partner with
Flexpoint Ford to grow a significant and competitive platform in the underserved
deep subprime space," Cavallaro said. "Our mission is simple — to provide a
solution for dealers to sell more cars to consumers that may otherwise be
turned down by more traditional financing sources. With Flexpoint Ford's
partnership, Pelican will be able to grow into a recognized leader in the
sector."

Chuck Glew, senior principal of Flexpoint Ford, commented, "We
are excited to partner with Troy Cavallaro and the entire management team of
Pelican. The team's focus and years of experience in the deep subprime niche
position this platform well for future success."

Flexpoint Ford vice president Michael Tyree added, "We
believe that Pelican's financing solutions and overall focus on high quality
service will allow the Company to become a trusted partner for both independent
and franchise dealers that are looking to capture deep subprime customers.  We are enthusiastic about the larger
opportunity for Pelican's continued growth in this market."

Hexagon Securities acted as financial adviser to Pelican on the deal.

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