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Republic Industries, Inc. To Acquire Two Dealership Groups In Houston

6 November 1997

Republic Industries, Inc. To Acquire Two Dealership Groups In Houston

                Acquisitions Complement Three Existing Houston
                      AutoNation USA Used Car Megastores

    FORT LAUDERDALE, Fla., Nov. 6 -- Republic Industries, Inc.
announced today that it has signed definitive agreements to
acquire two Houston area automotive dealership groups in separate transactions
valued at approximately $75 million, payable in Republic common stock.  The
acquisitions will help establish Republic's automotive retailing cluster in
the Houston market, where the company already operates three AutoNation USA
used car megastores.
    The transactions include all related real estate and are subject to
certain conditions, including manufacturer and government approval.  Inclusive
of the transactions announced today, Republic will own, or will have
agreements to acquire, 43 dealer groups, representing 225 franchise locations
in 17 states.
    Republic is acquiring Texan Ford, Texan Lincoln-Mercury/Isuzu and Champion
Ford from Anthony and Mary Gracely.  The Gracely dealerships had combined
revenue of approximately $230 million in 1996.  As a result of the
transaction, Mr. Gracely will sign a long-term employment agreement with
Republic.  In a separate transaction, Republic is also acquiring Mike Hall
Chevrolet-Geo from Mike Hall, who will also enter into a long-term employment
agreement with Republic.  Mike Hall Chevrolet-Geo had approximately $80
million of revenue in 1996.
    Commenting on the acquisitions, Steven R. Berrard, President and Co-Chief
Executive Officer of Republic, said, "These acquisitions greatly enhance
Republic's emerging automotive retail cluster in the important Houston market.
Together with the three existing AutoNation USA used car megastores in the
market, these dealerships form the base for continued growth in Houston."
    Anthony Gracely said, "Republic Industries has an outstanding strategy for
improving automotive retailing.  The people of Texan Ford, Texan Lincoln-
Mercury/Isuzu and Champion Ford share that vision.  We are anxious to join
with the other fine Republic automotive retailers across the country to help
deliver on that strategy."
    Mike Hall said, "It is clear that Republic Industries is leading the
consolidation underway in automotive retailing.  By joining forces with
Republic and the many other Republic automotive retailers, Mike Hall Chevrolet
will play a leading role in revitalizing automotive retailing in the Houston
market."
    Republic Industries is the largest automotive retailer in the world.  The
company also owns and operates the National and Alamo auto rental companies
and several other rental companies, as well as solid waste collection and
disposal companies across the United States.

SOURCE  Republic Industries, Inc.