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Republic Industries Acquires Dealerships in Five States With over $1.1 Billion in Annualized Revenue

Dec. 14, 1998

Also Begins Ford Motor Company Partnership with Rochester (NY) Auto Collection

FORT LAUDERDALE, Fla., Dec. 14 /PRNewswire/ -- Republic Industries, Inc. (NYSE: RII) today announced that it has signed definitive agreements to acquire 10 dealership groups comprising 31 automotive retail franchises in a series of separate transactions that will contribute approximately $1.1 billion of annualized revenue to Republic's operations. The aggregate purchase price of approximately $240 million will be paid in cash. Each transaction is subject to customary closing conditions, including manufacturer and government approval. The dealerships are located in California, Florida, Georgia, Illinois and Minnesota.

In northern California, Republic is acquiring substantially all of the Tasha Automotive Group (Dodge, Chrysler-Plymouth, Jeep-Eagle, Honda, Toyota, Nissan, Acura, Hyundai and Isuzu franchises), the largest privately held chain of automotive dealerships in the San Francisco Bay area. The Tasha dealerships are located in Roseville, Santa Clara, Hayward and Fremont. Republic already owns five dealerships in the San Francisco area. After the closing, Tasha's management team will continue to direct the day-to-day operations of the dealerships. Acquisition of the Toyota franchise is subject to compliance with a framework agreement between Republic and Toyota Motor Sales U.S.A.

In southern California, Republic is purchasing Arrow Volvo in Compton; the Gunderson Automotive Group (Chevrolet and Nissan franchises) in El Monte; and Peyton Cramer Acura (Acura and Isuzu franchises) in Torrance. Republic previously acquired the other dealerships of the Peyton Cramer Automotive Group. The dealerships complement Republic's existing operations in the greater Los Angeles area, which include 34 dealerships and four AutoNation USA used car megastores.

Gunderson-Ihle Chevrolet is the number one Chevrolet dealership in southern California, while Gunderson-Ihle Nissan is the third-largest Nissan dealership in California. A free-standing collision center is located at the Chevrolet dealership.

In Florida, Republic is acquiring Sunset Pontiac-GMC of Clearwater and Sunset Pontiac-GMC of Port Richey, as well as L.P. Evans Motors, which operates Mercedes-Benz and Nissan dealerships in Miami and a Nissan dealership in Fort Lauderdale. Republic has an extensive automotive retail network in Florida, with over 60 new car dealerships and 10 AutoNation USA used car megastores.

Republic is also acquiring Pope Chevrolet and Pope Imports, a Mitsubishi franchise, which are located in Roswell, Georgia. Republic already owns eight dealerships in the metropolitan Atlanta area and four AutoNation USA megastores.

In Illinois, Republic is acquiring Elmhurst Dodge/Kia in Elmhurst and Elmhurst Dodge in Des Plaines. Dealer principal William Callas will remain after the closing. Elmhurst Dodge is the number one Dodge dealership in the Chicago area and also one of the top retail volume dealerships in the Midwest. In addition, Republic is acquiring Woodfield Ford of Schaumburg. Republic also owns Libertyville Toyota in the greater Chicago area and an AutoNation USA store in Downers Grove.

Republic is also acquiring Tousley Ford of White Bear Lake, Minnesota, the leading volume Ford dealer in the Twin Cities region. The acquisition marks Republic's first foray into Minnesota. Dealer principals Tom Bennett and Ron Glassman will remain at the dealership after the closing. In addition to the dealership, the purchase includes the market's largest volume conversion van center, a stand-alone collision center and one-acre storage lot. Tousley Ford has operated as a one-price dealership since 1992.

"These acquisitions strengthen key markets for Republic in the San Francisco, Los Angeles, Atlanta, Tampa, south Florida and Chicago metropolitan areas," said Steven R. Berrard, Co-CEO of Republic Industries. "The purchase of Tousley Ford marks our entry into the Twin Cities retail automotive market, where we already have a huge presence since the headquarters of our National Car Rental operations is there."

In a related development last week, Republic said the partnership between Ford Motor Company's Ford Retail Network and Republic Industries launched the Rochester (NY) Auto Collection. The Rochester Auto Collection consists of eight Ford franchises and one Lincoln-Mercury franchise in the Rochester area. Ford owns 51 percent of the Collection; Republic owns 49 percent and will operate the dealerships on a day-to-day basis.

Republic Industries, Inc. is the world's largest automotive retailer. The Company owns the nation's largest group of franchised automotive dealerships and operates the AutoNation USA pre-owned vehicle megastore chain. Republic also owns and operates National Car Rental Systems, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA. Additionally, the Company owns 63.9 percent of Republic Services, Inc. (NYSE: RSG), one of the leading providers of non- hazardous waste collection and disposal services in the United States.

SOURCE Republic Industries, Inc.
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