Rush Enterprises Announces Acquisition of El Paso Great Basin Trucks Inc.

    SAN ANTONIO--Aug. 22, 2001--Rush Enterprises Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America, John Deere construction equipment dealerships in Texas and Michigan, and three of the largest farm and ranch superstores (D&D) in America, today announced that it acquired substantially all of the assets of El Paso Great Basin Trucks Inc., (El Paso Trucks), a Peterbilt truck dealership.
    The acquisition provides Rush with the exclusive rights to sell Peterbilt trucks and parts from two new locations in El Paso and Las Cruces, which encompasses most of west Texas and southern New Mexico. Rush now operates 34 truck locations in 7 states.
    The transaction was valued at approximately $2.5 million with the purchase price paid in cash. Rush intends to operate El Paso Trucks as a full-service Peterbilt franchise, and will begin to integrate their operations into the Rush Truck Centers immediately. Rush had revenues of $897.4 million during 2000 while El Paso Trucks had revenues of approximately $34.1 million during 2000. El Paso Trucks recorded unaudited pretax income of approximately $896,000 for the year ended 2000 and an unaudited pretax loss of approximately $25,000 for the seven months ended July 31, 2001.
    In announcing the acquisition, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises Inc. stated, "With the acquisition of this franchise Rush is now the sole provider of Peterbilt new trucks, parts and service at every major United States - Mexico border crossing between south Texas and southern California. With the continued booming growth throughout the southwest coupled with the successful growth of NAFTA related businesses, this acquisition is a great geographical fit for Rush. In addition, Rush now provides continuous parts and service operations from the Pacific Ocean to the Louisiana border along the I-10 corridor. Covering large sections of Texas, California, Oklahoma, Louisiana, Colorado, New Mexico and Arizona, Rush Truck Centers now have 34 locations offering seamless service, consistent pricing and 24 hour dependability across the entire southwest region." Rush added, "We look forward to joining forces with this organization and offering our consistently high-quality products and services over a much larger service territory."
    Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and John Deere construction equipment dealerships in Texas and Michigan. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Louisiana, Colorado, Arizona, New Mexico and Michigan. 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. The Company also operates retail farm and ranch superstores that serve the greater San Antonio, Houston and Dallas/Forth Worth, Texas areas.

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, competitive factors, general economic conditions, cyclicality, economic conditions in the new and used truck and construction equipment markets, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein and in filings made by the company with the Securities and Exchange Commission.