Neff Corp. Announces Repurchase of Notes and Amendment to Credit Facility

    MIAMI--June 24, 2003--Neff Corp. (OTC:NFFCA) (the "Company"), announced today the repurchase of its Senior Subordinated Notes in an aggregate principal amount of $81.1 million (the "Notes"). The Notes were repurchased during the second quarter of 2003 for a purchase price of $47.7 million. Because the Notes traded at a discount, the Company recognized a gain on debt extinguishment of $35.0 million which will be reflected in the Company's financial statements for the quarter ending June 30, 2003.
    Prior to the repurchase of the Notes, the Company amended the terms of its senior revolving credit facility to permit the repurchase of the Notes. The Company also amended the indentures governing the Notes and the revolving credit facility to allow the Company to finance the repurchase through the incurrence of a senior unsecured term loan (the "Term Loan") in the principal amount of $47.7 million. The Term Loan matures in May 2008 and accrues "paid-in-kind" interest at 11.25% per annum. In connection with the Term Loan, the Company issued warrants to the term loan lender to purchase a newly designated series of preferred stock of the Company. The preferred stock issuable under the warrants is convertible into a number of shares of the Company's Class A Common Stock equal to 15% of the Company's outstanding Class A and Class B Special Common Stock.
    The amendment to the Company's senior revolving credit facility also modified certain financial covenants in the credit facility and permanently waived all existing defaults. As of May 31, 2003, the Company was no longer in default under any covenants under its senior revolving credit facility.
    Juan Carlos Mas, President and Chief Executive Officer, stated: "This transaction has provided us the opportunity to make a substantial reduction to our total debt and our debt servicing costs. Taking into consideration the free cash flow from operations and our repurchase of these Notes at a substantial discount, we have been able to reduce our outstanding debt by $41.2 million and will reduce our cash interest payments by over $8.3 million per annum. During the remainder of 2003, we will continue to generate free cash flow and remain focused on reducing our outstanding debt. We continue to explore all opportunities for expense reduction and will remain disciplined in regards to our capital expenditures."
    Neff Corp. is one of the largest equipment rental companies in the United States, with 72 locations in 16 states at May 31, 2003.

    Note: This press release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. Actual results may differ materially from those projected in the forward-looking statements. Risks that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the Company's dependence on additional capital for future growth; and the degree to which the Company is leveraged. Additional information concerning these and other risks and uncertainties is contained from time-to-time in the Company's SEC filings. In light of these risks and uncertainties, there can be no assurance that the results referred to in forward-looking statements made in this press release will in fact occur.