RIFCO Renews BMO Senior Credit Facility with an Increase

RED DEER, AB, Jan. 18 /CNW/ - RIFCO Inc. (TSX.V-RFC) today announced that it has renewed its credit facility with BMO Bank of Montreal. The credit limit has been increased to $10.0M from the $9.5M previously authorized. With this renewal the banking relationship is being transitioned to the corporate banking division where credit needs above $10M are managed.

The credit facility is used by RIFCO to grant non-traditional auto loans. These loans are warehoused 'on-book' prior to securitization funding. It remains RIFCO's goal to increase the level of on-book loans. This facility provides the Company with its lowest funding costs. RIFCO employs a balanced approach for loan portfolio funding of equity, senior debt, subordinated debt and loan securitization funders.

In November, RIFCO announced its 1st renewal of a $30 million securitization facility with a Schedule 1 Canadian Chartered Bank.

In September, RIFCO announced its 5th renewal of a $30M per year securitization facility with Securcor Trust. Included in this renewal was a reduction in the cash reserve level that resulted in a one-time cash release of over $800,000.

In July, RIFCO announced a new $10M securitization facility with an Alberta Regional Credit Union.

In total, RIFCO currently has $70 million in securitization facilities. The Company will continue to seek addition facilities to meet its growth plans.

The Company is optimistic that funding conditions will continue to improve. RIFCO remains committed to granting loans that will perform within an established target range and with an acceptable profit margin.

About RIFCO Inc

RIFCO is one of Canada's fastest-growing automotive finance companies. Non-traditional auto loans are indirectly originated through a growing network of selected new and used vehicle dealers operating in all provinces except Saskatchewan and Quebec.

The common shares of RIFCO INC. are traded on the TSX Venture Exchange under the symbol "RFC". There are 19.53 million shares outstanding and 20.93 million (fully diluted) shares.

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.


For further information:

Lance A. Kadatz
Vice President and Chief Financial Officer
Telephone: 1-403-314-1214 EXT 7007
Fax: 1-403-314-1132
Email: kadatz@rifco.net
Website: www.rifco.net

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