Rush Enterprises, Inc. Reports Q1 Results

20 April 1998

    SAN ANTONIO, April 20 -- Rush Enterprises, Inc.
, which operates the largest network of Peterbilt heavy-duty
truck dealerships in North America and a John Deere construction equipment
dealership in Houston, today announced results for the first quarter ended
March 31, 1998.
    In the first quarter, the Company's gross revenues totaled $126.1 million,
a 52.2 percent increase over gross revenues of $82.9 million reported for the
first quarter ended March 31, 1997.  Net income for the quarter increased
70.3 percent to $1.3 million, or $0.20 per share, compared with net income of
$785,000, or $0.12 per share reported in the quarter ended March 31, 1997.
    In announcing the results, W. Marvin Rush, Chairman and Chief Executive
Officer of Rush Enterprises, said, "We are pleased with the significant
increases in both revenues and earnings.  The growth in same store sales is
particularly gratifying, as is the increase in our parts, service and body
shop operations, which are high margin businesses."
    Mr. Rush added, "We continue to see strength in all of our operations
which demonstrates the success of our strategy of industry consolidation and
broadening our product lines to existing customers.  We are now poised to
become the leader in the truck and equipment dealership industry."
    Rush Enterprises operates the largest network of Peterbilt heavy-duty
truck dealerships in North America and a John Deere construction equipment
dealership in Houston, Texas.  Its current operations include a network of
dealerships located in Texas, California, Oklahoma, Louisiana and Colorado.
These dealerships provide an integrated, one-stop source for the retail sale
of new and used heavy-duty trucks and construction equipment; aftermarket
parts, service and body shop facilities; and a wide array of financial
services, including the financing of truck and equipment sales, insurance
products and leasing and rentals.
    Certain statements contained herein are "forward-looking" statements (as
such term is defined in the Private Securities Litigation Reform act of 1995).
Because such statements include risks and uncertainties, actual results may
differ materially from those expressed or implied by such forward-looking
statements.  Factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements include, but are
not limited to, those discussed in filings may by the company with the
Securities and Exchange Commission.
    This release is available on the KCSA Worldwide website at http://www.kcsa.com.

                     Rush Enterprises, Inc. and Subsidiaries
                        Consolidated Statements of Income
                     (In thousands, except earning per share)
                                   (Unaudited)

                                                           Three Months Ended
                                                                March 31,
                                                           1998         1997
    Revenues:
     New and used truck sales                             $84,987     $61,805
     Parts and service                                     23,329      16,295
     Construction equipment sales                           7,951         ---
     Lease and rental                                       4,830       3,208
     Finance and insurance                                  2,358       1,025
     Other                                                  2,620         579

      Total Revenues                                      126,075      82,912

    Cost of Products Sold                                 104,363      69,743
    Gross Profit                                           21,712      13,169
    Selling, General and Administrative                    17,231      10,784
    Depreciation and Amortization                             955         628
    Operating Income                                        3,526       1,757
    Interest Expense                                        1,298         490
    Income Before Income Taxes                              2,228       1,267
    Provision for Income Taxes                                891         482
    Net Income                                            $ 1,337     $   785

    Basic and diluted income from operations per share    $  0.20     $  0.12
    Weighted average shares outstanding:
     Basic                                                  6,644       6,644
     Diluted                                                6,645       6,644

SOURCE  Rush Enterprises, Inc.