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Large Pittsburgh Area Towing Company Joins 1-800-AutoTow

3 August 1998

Large Pittsburgh Area Towing Company Joins 1-800-AutoTow In National Consolidation of Towing Industry


    BOYNTON BEACH, Fla.--Aug. 3, 1998-- 1-800-AutoTow(tm) (OTC BB:AUTW), which is rolling up America's fragmented vehicle towing industry into a national brand, has acquired one of the largest towing companies in the Pittsburgh area, company officials announced today.
    McGann & Chester, Inc., serving Western Pennsylvania for 20 years, has 28 employees and 25 trucks. Customers include Three River Stadium, U-Haul, the City of Pittsburgh, and Pennsylvania State Police. The company's three principals have over 60 years of combined towing experience. Robert A. McGann, Sr. and Robert M. McGann, Jr. will continue to manage the Pittsburgh operation, while the company's Vice President Bill Chester will become a regional vice president for 1-800-AutoTow(tm).
    1-800-AutoTow(tm) was attracted to McGann & Chester, in part, because of its track record of community service. McGann & Chester received the Governor's Highway Safety Award for participating in the TOWED program, which tows home intoxicated drivers who are unable to drive. The company also earned a proclamation from the Pittsburgh City Council for donating the equipment and manpower to take down community decorations during the holiday season. In addition, McGann & Chester is a founding member of the Pennsylvania Towing Association.
    "We joined 1-800-AutoTow(tm) because we wanted to be part of a national company whose goal is to raise the towing industry to a higher level of professionalism," said Robert McGann, Sr. "1-800-AutoTow(tm) will provide additional resources so that we can give better service to our customers, invest in our employees, and enhance our competitive position."
    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 in annual revenues. Similar consolidation efforts already have been successful in industries such as car dealerships, pharmacies, 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(tm), Inc. was founded in 1997 and is based in Boynton Beach, Fla. 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.