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Cross-Continent Plans Realignment of Dealerships

27 May 1997

Cross-Continent Plans Realignment of Dealerships

    AMARILLO, Texas, May 27 -_ Cross-Continent Auto Retailers,
Inc. today announced its intention to explore the possible sale of
its Performance Nissan and Performance Dodge dealerships, both operating in
the Oklahoma City market.  The company has retained Furman Selz to assist with
the divestiture process.
    Bill Gilliland, chairman and chief executive officer, said, "As the first
public franchised automobile dealership group, our strategy has become that of
acquiring and operating larger dealerships with a greater profit potential
than these two dealerships which were acquired prior to our initial public
offering.  The board's decision reflects the refinement of our strategies
which we feel will more fully align the company's operations with long-term
shareholder value."
    Gilliland continued, "These two dealerships were acquired in 1995 when we
were a private company.  Now that we are a public company the focus of our
growth initiative is to acquire and operate high-quality, profitable
dealerships rather than smaller turn around operations."
    Performance Nissan was acquired in February 1995 and Performance Dodge was
acquired in December 1995.  The two dealerships have under performed, relative
to the company's other dealerships the company owns and operates, in sales
growth and overall profitability.
    Total revenue at the Performance Nissan dealership approximated
$32 million in 1996, and total revenue at the Performance Dodge dealership
approximated $46 million in 1996.
    Gilliland also noted, "This decision by the board does not in any way
suggest we are abandoning the Oklahoma City market.  We continue to own and
operate the much larger Lynn Hickey Dodge dealership, and we would consider
acquiring other franchises in that market."
    Cross-Continent Auto Retailers, Inc. owns and operates a group of
franchised automobile dealerships in Texas, Oklahoma, Nevada and Colorado.
Through these dealerships, the company sells new and used cars and light
trucks, arranges related financing and insurance, sells replacement parts and
provides vehicle maintenance and repair services.
    Cross-Continent Auto Retailers, Inc. is listed on the New York Stock
Exchange under the symbol XC.
    Cross-Continent Auto Retailers, Inc. believes its shareholders benefit
from the views of management about the future of the company's business.
Included herein are forward-looking statements, including statements with
respect to anticipated revenue growth, acquisitions and profitability.  These
statements involve risks and uncertainties that could cause actual results to
differ materially, including without limitation economic conditions, risks
associated with acquisitions and the risk factors set forth from time to time
in the company's filings with the Securities and Exchange Commission.

SOURCE  Cross-Continent Auto Retailers, Inc.