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Two Tampa Towing Companies Join 1-800-AutoTow

9 July 1998

Two Tampa Towing Companies Join 1-800-AutoTow As First Acquisitions in National Consolidation

    BOYNTON BEACH, Fla.--July 8, 1998-- 1-800-AutoTow(TM), (OTC Bulletin Board: AUTW) which is rolling up America's fragmented vehicle towing industry into a national brand, has acquired its first two companies in the Tampa area, company officials announced today.
    D&D Towing & Recovery, and its subsidiary, Aroars Towing, have joined 1-800-AutoTow(TM). The company's owner, Mike Dempsey, will become 1-800-AutoTow's Tampa Bay area service manager. D&D and Aroars have a combined fleet of 12 vehicles, including service trucks, flatbeds and towing trucks. D&D has been in operation for 10 years and Aroars has been in business for seven years; both serve southern Hillsborough County area.
    D&D Towing is a recent recipient of the American Automobile Association's 10-year award for customer service excellence. The company also earned the prestigious "On-Time Performance ACE Customer Service Excellence" award from 1994-1996, presented by American Towman Magazine and major motor clubs of North America. An active member of the community, Mr. Dempsey makes regular monetary contributions to local high school teams and parent/student teacher associations. He also donated a car to a high school for Mothers Against Drunk Driving Week, so students could watch demonstrations on the effects of drinking and driving. In a city beautification project, D&D "adopted" the maintenance and watering of trees along four city blocks.
    "We've joined a quality team that shares our commitment to enhancing the industry and serving our customers," said Dempsey. "We're excited about being part of what we think will become the greatest towing company in the country."
    1-800-AutoTow(TM), which began publicly trading June 25, is acquiring well-run vehicle towing companies in metropolitan areas across the country, and will consolidate their operations into a single branded identity. The highly fragmented vehicle towing industry is believed to consist of more than 36,000 towing companies nationwide, representing $12-$15 billion annual revenues. Similar consolidation efforts already have been successful in industries such as car dealerships, pharmaceuticals, waste removal, courier, funeral and ambulance services.
    The transition to a national service for 1-800-AutoTow(TM) includes professional driver training, fleet standardization, automated 24-hour dispatching using GPS (global positioning satellite) technology, the introduction of a dedicated sales force for local and national marketing, and benefits packages designed to attract and retain quality employees.
    Customers include motor clubs, car dealerships, police departments, individual car and truck owners, financial institutions, and commercial fleets for vehicle towing, transport, accident recovery and storage. Towing operators whose companies are acquired by 1-800-AutoTow(TM) are offered cash, stock and opportunities to stay on with the company.
    1-800-AutoTow, Inc. was founded in 1997 and is based in Boynton Beach, Florida. The company's management team consists of a diverse and experienced group of entrepreneurs, senior operating executives and towing veterans. More information is available on the internet at www.1800autotow.com.