RIFCO INC.
TSX VENTURE : RFC

RIFCO INC.

March 27, 2008 12:26 ET

RIFCO to Focus on Auto Lending-Transfers Repair Financing to Travelers

RED DEER, ALBERTA--(Marketwire - March 27, 2008) - RIFCO Inc. (TSX VENTURE:RFC) today is pleased to announce that the Company has agreed to terms with Travelers Acceptance Corporation (Travelers) to a Strategic Alliance for RIFCO's repairer networks and new repair loans. RIFCO will focus on its growing network of automobile dealers and increasing originations of non-prime auto loans.

It has become increasingly clear that the opportunity for point-of-sale repair financing was best served by an unsecured consumer finance program. RIFCO determined that Travelers was uniquely suited to provide such a program to RIFCO's network of repairers. Travelers have over 30 years experience in unsecured consumer financing for point-of-sale networks. By transferring the repair loan opportunities to Travelers, RIFCO will be able to redeploy human and financial capital resources to fuel its rapid growth in its auto lending business.

Over the coming weeks, RIFCO and Travelers employees will work toward a smooth transition for RIFCO repairers. There is no agreement to transfer ownership or servicing of RIFCO's repair loan portfolio to Travelers. Travelers do not compete with RIFCO in its core auto lending marketplace.

RIFCO does not expect to report significant short term changes in revenue or expenses as a result of the strategic alliance. No one time charges or gains are contemplated. As RIFCO capacity is redeployed, the company expects improved overall efficiency will result.

RIFCO's evolving focus on auto dealers and non-prime auto lending has become increasingly fruitful. The November 2007 launch of RIFCO's on-line application system reaffirmed the demand for RIFCO's program. In February 2008, RIFCO originated over $3.5M, of which over 90% was for auto purchases.

About RIFCO Inc

RIFCO is a specialty consumer finance corporation currently providing motorists with non-prime Auto Financing through a growing network of new & used vehicle dealers operating in all provinces except Saskatchewan and Quebec. RIFCO Inc. operates through its wholly owned subsidiary Repair Industry Finance Corporation.

About Travelers Acceptance Corporation

Travelers Acceptance Corporation has since 1974 been engaged by small and medium size businesses to provide financial choice and the generation of value through the application of experience, service and innovation to arrange, structure and fund unique indirect consumer financing solutions that close more sales, increase the businesses customer base and overall profitability. Travelers Acceptance Corporation consults with its business clients to create term financing solutions and services specifically tailored to providers and consumers of products and services in tuition, automotive aftermarket, automotive repair, vacation ownership, healthcare, membership, consumer durables, retail, power products and home improvement businesses. For more information about Travelers Consumer Finance, visit www.travelersacceptance.com

The common shares of RIFCO INC. are traded on the TSX Venture Exchange under the symbol "RFC". RIFCO Inc. has 19.23 million shares outstanding.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • RIFCO INC.
    Lance A. Kadatz
    Vice President and Chief Financial Officer
    (403) 314-1214 Ext 111
    (403) 314-1132 (FAX)
    Email: kadatz@rifco.net
    Website: www.rifco.net