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Copart Reports Third Quarter Financial Results

FAIRFIELD, Calif.--May 25, 2004--Copart, Inc. today reported results for the third quarter ended April 30, 2004.

In the third quarter of fiscal 2004 Copart earned net income of $24,964,400 on revenues of $116,618,400. In the same period last year the company earned $15,422,800 on revenues of $93,928,700. These represent increases in net income and revenue of 62% and 24%, respectively. Fully diluted earnings per share (EPS) for the quarter was $.27 compared to $.17 last year, an increase of 59%.

For the first nine months of fiscal 2004 Copart earned net income of $57,771,100 on revenues of $300,720,000. In the same period last year the company earned $43,885,800 on revenues of $260,207,000. These represent increases in net income and revenue of 32% and 16%, respectively. Fully diluted earnings per share for the nine months was $.63 compared to $.47 last year, an increase of 34%.

Same store revenues were up 23% and 14% over the same quarter and the nine-month period last year, respectively.

"This quarter's results reflect the significance of our new VB2 technology to our industry. Returns to sellers of salvage vehicles, measured as a ratio of gross proceeds to the actual cash value provided by the sellers, grew by almost 9% over the previous quarter and 17% over the same quarter last year," said A. Jayson Adair, Copart's President.

"In addition, 53% of total auction proceeds were generated by sales to buyers outside the state in which the vehicle was located, with 36% going outside the state and 17% going outside the country."

"At an industry advisory board held by Copart in April, insurance industry representatives acknowledged the effectiveness of VB2 and expressed appreciation for Copart's vision," added Adair. "We are pleased to provide this value to our sellers and we will continue to lead our industry through innovation and technology to the benefit of all of our constituents; sellers, buyers, employees and shareholders."

Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company operates 105 facilities in the United States and Canada. It also provides services in other locations through its national network of independent salvage vehicle processors.


                             Copart, Inc.
                Consolidated Statements of Income -- 1
             (Dollars in thousands, except per share data)

                                          Three Months Ended April 30,
                                                  2004           2003
----------------------------------------------------------------------

Revenues                                  $    116,618   $     93,929
                                           ------------   ------------

Operating costs and expenses:
  Yard and fleet                                58,053         55,012
  General and administrative                    10,515          7,910
  Depreciation and amortization                  7,652          6,398
                                           ------------   ------------
    Total operating expenses                    76,220         69,320
                                           ------------   ------------
    Operating income                            40,398         24,609
                                           ------------   ------------

Other income:
  Interest income, net                             338            335
  (Loss) gain on sale of fleet equipment          (773)            39
  Other income                                     591            498
                                           ------------   ------------
    Total other income                             156            872
                                           ------------   ------------
    Income before income taxes                  40,554         25,481
                                           ------------   ------------

Income taxes                                    15,590         10,058
                                           ------------   ------------
    Net income                            $     24,964   $     15,423
                                           ============   ============

Basic net income per share                $        .28   $        .17
                                           ============   ============

Weighted average shares outstanding             89,373         91,195
                                           ============   ============

Diluted net income per share              $        .27   $        .17
                                           ============   ============

Weighted average shares and dilutive
 potential common shares outstanding            91,974         92,599
                                           ============   ============


                             Copart, Inc.
                Consolidated Statements of Income -- 2
             (Dollars in thousands, except per share data)

                                           Nine Months Ended April 30,
                                                  2004           2003
----------------------------------------------------------------------

Revenues                                  $    300,720   $    260,207
                                           ------------   ------------

Operating costs and expenses:
  Yard and fleet                               159,659        151,089
  General and administrative                    27,224         20,983
  Depreciation and amortization                 23,133         18,392
                                           ------------   ------------
    Total operating expenses                   210,016        190,464
                                           ------------   ------------
    Operating income                            90,704         69,743
                                           ------------   ------------

Other income:
  Interest income, net                             924          1,272
  Gain on sale of fleet equipment                1,155            210
  Other income                                   1,869          1,079
                                           ------------   ------------
    Total other income                           3,948          2,561
                                           ------------   ------------
    Income before income taxes                  94,652         72,304
                                           ------------   ------------

Income taxes                                    36,881         28,418
                                           ------------   ------------
    Net income                            $     57,771   $     43,886
                                           ============   ============

Basic net income per share                $        .65   $        .48
                                           ============   ============

Weighted average shares outstanding             89,296         91,945
                                           ============   ============

Diluted net income per share              $        .63   $        .47
                                           ============   ============

Weighted average shares and dilutive
 potential common shares outstanding            91,236         93,586
                                           ============   ============

Other Data
Number of auction facilities                       105            102


                             Copart, Inc.
                   Consolidated Balance Sheets -- 3
                   (in thousands, except share data)

                                                  April 30,  July 31,
                                                      2004       2003
----------------------------------------------------------------------

                            ASSETS
                            ------
Current assets:
   Cash and cash equivalents                      $165,639   $116,746
   Accounts receivable, net                         84,391     71,553
   Vehicle pooling costs                            24,497     23,381
   Income taxes receivable                               -      4,018
   Prepaid expenses and other assets                10,861     10,068
   Equipment held for sale                           6,564          -
                                                   --------   --------
      Total current assets                         291,952    225,766
Property and equipment, net                        251,600    244,361
Intangibles and other assets, net                    5,489      7,859
Goodwill                                           109,749    109,114
                                                   --------   --------
      Total assets                                $658,790   $587,100
                                                   ========   ========


             LIABILITIES AND SHAREHOLDERS' EQUITY
             ------------------------------------

Current liabilities:
   Current portion of long-term debt              $      7   $     91
   Accounts payable and accrued liabilities         47,343     38,309
   Deferred revenue                                  9,889      9,708
   Income taxes payable                              9,687          -
   Deferred income taxes                             6,331      5,902
   Other current liabilities                           158        174
                                                   --------   --------
      Total current liabilities                     73,415     54,184
Deferred income taxes                                8,014      6,014
Long-term debt, less current portion                    11         16
Other liabilities                                    1,194      1,247
                                                   --------   --------
      Total liabilities                             82,634     61,461
                                                   --------   --------
Commitments and contingencies

Shareholders' equity:
   Common stock, no par value - 180,000,000 shares 
    authorized; 89,765,139 and 89,883,412 shares 
    issued and outstanding at April 30, 2004 and
    July 31, 2003, respectively                    262,741    269,968
   Accumulated other comprehensive loss                (28)         -
   Retained earnings                               313,443    255,671
                                                   --------   --------
      Total shareholders' equity                   576,156    525,639
                                                   --------   --------
      Total liabilities and shareholders' equity  $658,790   $587,100
                                                   ========   ========