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Cross-Continent Acquires Las Vegas Dealerships

6 January 1998

Cross-Continent Completes Acquisition of Chaisson Dealerships in Las Vegas

    AMARILLO, Texas, Jan. 6 -- Cross-Continent Auto Retailers,
Inc. , today announced that it has completed the previously
announced acquisition of Chaisson Motor Cars and Chaisson BMW, a multiple
franchise dealership group operating in Las Vegas and Henderson, Nevada.
    The purchase price approximated $18 million and consisted of $13.3 million
in cash which was provided under the company's revolving line of credit,
$2.0 million in Cross-Continent common stock and $2.7 million in notes payable
to the sellers.  The transaction will be accounted for as a purchase.
    Chaisson Motor Cars operates a total of three new car facilities in Las
Vegas and Henderson, Nevada.  Chaisson is the exclusive dealership for BMW,
Volkswagen, Audi, Land Rover and other specialty luxury vehicles in the Las
Vegas market.  Chaisson BMW commenced operations in a recently completed
state-of-the-art facility located at the Henderson Auto Mall in May 1997.
    For the eleven month period ended November 30, 1997, total revenue for the
Chaisson dealerships approximated $85 million.  The dealerships sold 1,331 new
units, 593 used retail units and 513 wholesale units.
    Total revenues were $70 million for the year ended December 31, 1996.  In
1996 the dealerships sold 1,228 new units, 477 used retail units and 360 used
wholesale units.  Reported revenue and unit sales for 1996 do not include
Chaisson BMW, in Henderson, Nevada, which commenced business in May 1997.
    Bill Gilliland, chairman and chief executive officer of Cross-Continent,
said, "The addition of the Chaisson dealerships complements our strategy of
acquiring high-quality, profitable dealerships in selected markets and
enhances our market share in one of the fastest growing markets in the United
States."
    Gilliland noted the acquisition is a nice strategic fit for Cross-
Continent in the Las Vegas market since Chaisson's facilities are located near
the recently acquired Toyota and Nissan dealerships.  "The close proximity of
the dealerships will enable the company to expand our used vehicle sales
operations, and will allow us to realize other benefits from such a tight
cluster of operations in the Las Vegas market."
    Following the completion of the Chaisson acquisition, Cross-Continent will
represent nine different manufacturers in the Las Vegas market, which
according to recent publications ranks as one of the nation's fastest growing
metropolitan areas.
    The transaction represents the company's fourth acquisition following its
initial public offering on September 24, 1996.  On October 1, 1996, the
company completed the acquisition of Lynn Hickey Dodge, in Oklahoma City.  On
April 10, 1997, the company completed the acquisition of two Toyota
dealerships located in Las Vegas, Nevada and Denver, Colorado.  On July 1,
1997, the company completed the acquisition of Sahara Nissan, Inc. which
operates a Nissan dealership in Las Vegas, Nevada under the trade name Nissan
West.
    Cross-Continent Auto Retailers, Inc. owns and operates a group of
franchised automobile dealerships in Texas, Oklahoma, Colorado and Nevada.
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.  There
are many factors which affect management's views about future events and
trends of the company's business.  These factors involve risk and
uncertainties that could cause actual results or trends to differ materially
from management's view, 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.