Rush Enterprises Announces Preliminary Agreements to Acquire the Assets of Perfection Equipment Inc.

    SAN ANTONIO--Oct. 23, 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 has signed a definitive purchase agreement to purchase the assets of Perfection Equipment Company Inc. (Perfection), an Oklahoma corporation, from its parent company, TransCom USA Management Co. L.P. (Transcom).
    On May 7, 2001 Transcom filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code"). Rush was recognized as the "stalking horse" bidder by the United States Bankruptcy Court for the assets of Perfection. The pending acquisition will provide Rush with Perfection's oil and gas up-fitting business, medium-duty truck accessory and up-fitting business, and will further compliment Rush's existing heavy-duty truck parts business, all located in Oklahoma City, Okla.
    Rush has a high regard for the management and the employees of Perfection and looks forward to working with the team. Rush intends to integrate their operations into the Rush Truck Center system upon completion of the transaction. Rush had revenues of $897.4 million during 2000 while Perfection had revenues of approximately $16.2 million for the same period.
    Rush anticipates the purchase price for Perfection will be approximately $4.2 million and will be paid for with cash. Subject to an auction administered by the Bankruptcy Court on Nov. 8, 2001, Rush expects the acquisition to close on or about Nov. 12, 2001. Perfection recorded unaudited pretax earnings of $1.1 million for the seven-month period ended July 31, 2001.
    In announcing the agreements, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises Inc. stated, "This acquisition will complement our existing Oklahoma City dealership and the services we provide to the oil and gas industry." Mr. Rush added, "We look forward to joining forces with this very well-run organization and offering our consistently high-quality products and services to our customers in Oklahoma."
    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, those discussed in filings made by the company with the Securities and Exchange Commission.