CONTACTS:             Robert Fulton - Vice President and Treasurer
                      (602) 852-6600
                      Investor Relations - Ugly Duckling Corporation
                      Investor-relations@uglyduckling.com


   Ugly Duckling Announces Court Approval of Settlement of Delaware Litigation

PHOENIX - (BUSINESS  WIRE) - April 19, 2002 - Ugly  Duckling  Corporation  (AMEX
UGY),  today  reported  court approval of the settlement of derivative and class
action  litigation  filed in  Delaware.  This  litigation,  captioned In Re Ugly
Duckling Corporation  Shareholders Derivative and Class Action, Consol. C.A. No.
18746-NC.  , is  related  to the  Company's  recently  completed  going  private
transaction.

Under the court order,  a class was  certified,  the  settlement was found to be
fair,  reasonable,  adequate and in the best interests of the class,  all claims
were  released,   no  additional   consideration  was  ordered  to  be  paid  to
shareholders,  and plaintiffs'  counsel received an award of $1,000,000 for fees
and $50,000 for costs.  The court order will become final if not appealed within
the next thirty days.

Headquartered  in Phoenix,  Arizona,  Ugly Duckling  Corporation  is the largest
operator of used car dealerships  focused  exclusively on the sub-prime  market.
The Company underwrites,  finances and services sub-prime contracts generated at
its 76 Ugly  Duckling  dealerships,  located in 11  metropolitan  areas in eight
states.