FinishMaster Acquisition of LDI AutoPaints

6 July 1998

FinishMaster Shareholders Approve Acquisition of LDI AutoPaints

    INDIANAPOLIS--July 6, 1998--FinishMaster, Inc. today announced that its shareholders approved the Company's plan of merger with LDI AutoPaints, Inc. at FinishMaster's annual meeting last week.
    FinishMaster, Inc., a national distributor of automotive paints and related accessories, said the acquisition of LDI AutoPaints, a Florida distributor of automotive paints and related products, will add 16 distribution outlets and provide a strong complement to FinishMaster's Thompson operations.
    "The combination of LDI AutoPaints and FinishMaster brings key purchasing and operating synergies that should contribute to our profitability, while also ensuring our leadership position in the strong Southeastern market," said Andre Lacy, chairman of the board of FinishMaster. "The board of directors is pleased to have the support of our shareholders as we execute FinishMaster's expansion and acquisition strategy and work to increase shareholder value."
    FinishMaster said the acquisition of LDI AutoPaints was effective June 30, 1998.
    Other highlights of FinishMaster's annual meeting of shareholders included the reelection of Margot L. Eccles, William J. Fennessy, Peter L. Frechette, Andre B. Lacy, Michael L. Smith, Walter S. Wiseman and Thomas U. Young to serve one-year terms on FinishMaster's board of directors and the appointment of Coopers & Lybrand LLP as FinishMaster's auditors. Shareholders also approved an amendment to FinishMaster's Articles of Incorporation to increase the number of shares of common stock authorized for issuance from 10 million to 25 million.
    "The authorization of additional shares reflects the board's long-term growth and acquisition strategy and provides capacity for FinishMaster to implement this plan," said Lacy.
    FinishMaster is the leading national distributor of automotive paints, coatings, and related accessories to the automotive collision repair industry. The Company and its wholly owned subsidiary, Thompson PBE, have a combined 153 sales outlets and three distribution centers in 22 states, including stores in 25 of the 35 largest metropolitan areas in the country.
    This press release contains forward-looking statements pertaining to, among other things, the Company's future results of operations, cash flows and liquidity, operating efficiencies and acquisitions. Those statements are based largely on the Company's current expectations and are subject to a number of risks and uncertainties, including, among other things, the Company's ability to rapidly and successfully integrate its acquired operations. Actual results may differ. Additional information concerning factors that could cause results to differ is contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 1998.

    For more information on FinishMaster via the
    Internet visit our Corporate News on the Net page
    at http://www.businesswire.com/cnn/fmst.htm or
    via fax through our NewsOnDemand service call 800/411-3989.