United Road Exchanges $106 Million of Debt for New Preferred Stock

ROMULUS, Mich., June 24 -- North America's leading provider of towing recovery and vehicle transport services has completed an exchange transaction that has strengthened its financial position. As part of the transaction, approximately $106 million of debentures held by Charter URS, LLC were converted into a new class of Series C preferred stock with a face value of $25 million. $27.5 million of preferred stock held by Blue Truck Acquisition, LLC and $4.5 million of accrued dividends thereon, were converted into a new class of Series B preferred stock (junior to the new Series C Preferred) with a face value of approximately $2.8 million. Together, the Series C and Series B preferred stock are convertible into approximately 99.9% of the total common stock of the Company. In addition, Charter URS will have the right to appoint a majority of the Company's Board of Directors.

A key benefit of the transaction is the elimination of approximately $106 million of debt from the Company's balance sheet and the elimination of approximately $9 million in yearly interest cost. Pro forma for the exchange, United Road will have a book net worth in excess of $36 million. "The participation by Charter and Blue Truck in this balance sheet enhancing transaction is a significant display of confidence in our business prospects, our management and our entire employee team," said Michael A. Wysocki, the Company's Chief Executive Officer.

As part of the transaction, United Road has also amended its bank agreement to provide the Company with additional funding availability. The funds are anticipated to be used to purchase approximately $10 million of new equipment before the end of the year.

"For the last few years a high level of debt taken on through many initial acquisitions has challenged our Company," said Mr. Wysocki. "This transaction eliminates that negative financial stigma and provides us with a strong balance sheet and operational flexibility that will be a competitive advantage."

"The exchange of debt for equity and the expansion of our credit agreement are demonstrable statements of confidence in our Company by the financial community," said Mr. Wysocki. "These accomplishments were made, thanks to our team of dedicated, hard-working professionals who bring logistic intellect and energy to the operations of United Road Services every day."

Formed in July 1997, United Road Services, Inc. has a network of 79 locations in 25 states. The Company's comprehensive range of services includes transporting new and used vehicles and heavy equipment; towing, impounding and storing motor vehicles and conducting lien sales and auctions of abandoned vehicles. More information regarding United Road Services, Inc. can be obtained from the URSI website at http://www.unitedroad.com/. United Road's corporate offices are located at 10701 Middlebelt Road, Romulus, Michigan 48174.

This release contains forward-looking statements. These statements are subject to certain risks and uncertainties, including, among others, loss of significant customers and contracts, difficulties associated with integrating acquired companies, changes in the level of demand for towing and transport services and price changes in response to competitive factors. In addition, the ability of the company to successfully implement an operational turnaround is subject to a number of factors, some of which are beyond its control, including the sufficiency of its capital resources, stability of customer demand, the effectiveness of changes in management and uncertainties associated with its ability to achieve administrative and operating cost savings and capitalize on its asset base and strategic position. These risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof.

The company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.