ADESA Publishes Inaugural Edition of Global Vehicle Remarketing

    LAS VEGAS, Feb. 27 Used vehicle sales in the U.S., which
have been consistently strong even during recessions and new vehicle sales
slumps, are expected to rise from 41.6 million units in 2000 to
46.5 million units in 2005 according to Global Vehicle Remarketing, a new
study issued by ADESA Corporation.

    The first edition of this ongoing series of reports focuses on the U.S.
and Canadian markets.  Canada adds another three million units annually to
used vehicle sales in North America, the study finds.

    These used vehicle sales are expected to generate growth in sales in the
vehicle remarketing industry, of which auction companies like ADESA are a
major component.  The study projects that auction sales in the U.S. will grow
from 8.9 million units in 2000 to nearly 10.0 million in 2005.

    "Clearly the flow of vehicles into the vehicle remarketing industry is
ample, growing, and secure," said Jim Hallett, president and CEO of ADESA
Corporation, citing one of the study's conclusions.

    This new Global Vehicle Remarketing report series is aimed at generating a
better understanding of the vehicle remarketing industry, which includes
auctions (including wholesale automotive auctions, medium and heavy commercial
truck auctions, and salvage auctions), wholesalers, and dealers.  The study
includes a detailed, two-page flow chart that concisely captures the various
elements of vehicle remarketing, as well as the volumes associated with each
step in the process.

    The report was produced under the direction of Frank Stephens, executive
vice president of marketing and strategic planning, and is authored by Tom
Kontos, vice president of industry relations and analytical services.

    The report provides other insights including the following:

    -- Vehicles have a lifecycle and go through several periods of ownership
       and remarketing before their remaining value is salvaged and they are
       scrapped.

    -- There are 663 million vehicles in operation around the world, and more
       than one-third (over 230 million) of them are in the U.S. (over 213
       million) and Canada (over 17 million).

    -- Medium and heavy commercial trucks are currently experiencing an
       oversupply in the used truck market.  Overcoming the glut will require
       a concerted remarketing effort, and wholesale automotive auction
       companies like ADESA can play a major role in this.

    -- High new vehicle sales since 1994, plus record new auto sales in 1999
       and 2000 have filled the remarketing pipeline with plenty of late-model
       vehicles, many of which will come off 24-month and 36-month leases in
       the coming years.

    The report also includes several new "indices" of auction volumes, prices,
and conversion rates for four major market segments:

    1.  Factory (primarily program vehicles);
    2.  Captive finance (primarily off-lease vehicles sold by the automobile
        manufacturers' finance arms);
    3.  Fleet/Lease (includes off-lease vehicles from non-captive finance
        companies as well as commercial fleet vehicles); and
    4.  Dealer consignment (or dealer-to-dealer auction sales)

    Future reports in this series will cover other markets and specific topics
like used vehicle prices, the salvage industry, and the role of the Internet,
as well as other markets around the world.  ADESA Corporation will also
regularly release the above indices.