Asset Acceptance Capital Corp. Announces the Closing of its Chicago Office

WARREN, Mich. — Asset Acceptance Capital Corp. (Nasdaq: AACC), a leading purchaser and collector of charged-off consumer debt, today announced that it will be closing its Chicago, Illinois, collections office. Once substantially completed, the closing of the office will reduce the Company’s operating expenses by approximately $2.0 million per year.

Rion Needs, President and CEO, Asset Acceptance Capital Corp. noted, "Today we announced the difficult decision to close our Chicago, Illinois office. As we stated on our second quarter 2010 conference call, we continue to evaluate our asset base, which includes rationalizing underperforming assets. To date, our Chicago office has consistently had some of the lowest productivity rates and the highest level of attrition within our network. Given our recent efforts to increase our total network capacity, we are able to shift the existing inventory in Chicago to our remaining AACC offices and agency partners. We anticipate that this action will favorably impact overall profitability and productivity without sacrificing top-line collections."

Needs continued, "While we will continue to identify strategies to further improve our cost structure and grow collections throughout our business, there are no immediate plans for additional office consolidation at this time. The savings we anticipate to realize from the Chicago office consolidation are expected to be redeployed to further our long-term initiatives to drive growth and improve profitability throughout our business."

In connection with closing the Chicago collections office, the Company will incur approximately $1.1 million in restructuring charges during the fourth quarter, which include employee termination benefits, contract termination fees for the remaining lease payments on the Chicago, Illinois office, accelerated depreciation and other exit costs. The employee termination benefits, contract termination costs and other exit costs will require an outlay of cash of approximately $1.0 million, while non-cash charges are estimated at $0.1 million.

About Asset Acceptance Capital Corp.
For more than 45 years, Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt. For more information, please visit www.AssetAcceptance.com.