Interstate National Dealer Services could go private

June 3,2002

MITCHEL FIELD, N.Y., Reuters reported that Interstate National Dealer Services, Inc., a provider of motor vehicle service contracts and warranties, said on Monday that senior executives Chester and Cindy Luby have proposed taking the company private.

The proposed transaction would be structured as a merger with a new corporation to be formed for that purpose and calls for stockholders to receive $6.00 per share. Interstate National Dealer Services stock closed on the Nasdaq on Monday at $4.63.

The board of directors has appointed a special committee of non-management directors to review the transaction proposed by Chief Executive Officer Chester Luby and Chief Operating Officer Cindy Luby.

The proposed transaction would result in the acquisition of all the outstanding shares of common stock of the company other than a portion of the shares owned or controlled by the Luby family.