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Republic Industries To Acquire Cross-Continent Auto Retailers, Inc.

3 September 1998

Republic Industries To Acquire Cross-Continent Auto Retailers, Inc.

    FORT LAUDERDALE, Fla., Sept. 3 -- Republic Industries, Inc.
today announced that it has signed a definitive agreement to
acquire Cross-Continent Auto Retailers, Inc. , of Amarillo, Texas.
    Under the terms of the agreement, Cross-Continent shareholders will
receive $10.70 in cash for each share of Cross-Continent. The transaction is
valued at approximately $145 million. Bill A. Gilliland, Chairman and Chief
Executive Officer of Cross-Continent, and Robert W. Hall, Senior Vice
Chairman, who collectively own approximately 62 percent of Cross-Continent's
outstanding shares, have agreed to vote in favor of the merger. The
transaction is subject to customary closing conditions including government
and manufacturer approval, and the approval of Cross-Continent stockholders.
The transaction is also subject to compliance with framework agreements
between Republic and certain manufacturers. The transaction is expected to
close in January, 1999.
    Cross-Continent Auto Retailers, Inc., owns and operates franchised
automobile retail dealerships in Las Vegas, Nevada; Denver, Colorado;
Amarillo, Texas, and in Oklahoma City, Oklahoma. Through its dealerships,
Cross-Continent sells new and used cars and light trucks, arranges related
financing and insurance, sells replacement parts and provides vehicle
maintenance and repair services. For the six months ended June 30, 1998,
Cross-Continent reported revenue of $316.8 million.
    Steven R. Berrard, President and Co-Chief Executive Officer of Republic
Industries, said the acquisition is in line with Republic's commitment to
growing its presence in the auto retailing industry.
    "Cross-Continent is a premier automotive retailer that adds high-quality
franchises to Republic's expanding presence in several valuable markets
including Las Vegas, the fastest growing metropolitan area in the nation," Mr.
Berrard said.
    Mr. Berrard said the acquisition, the first of a publicly traded auto
retailer, signals a new phase in the evolution of the auto retailing industry.
"Access to capital by being a publicly traded company is no longer enough to
succeed in automotive retailing. What's required now is a strong presence in
the new and used automotive markets, delivery of an easy and convenient
shopping experience, and the ability to achieve internal operating and
financial synergies. By bringing these qualities together under a single
corporate structure, Republic Industries is working to raise the level of the
customer experience while eliminating some of the inefficiencies that are part
of today's automotive distribution process. We're pleased to be joined in that
effort by the experienced and talented management team of Cross-Continent and
we welcome all of the Cross-Continent retailers into Republic's growing
network of premier automotive retailers."
    Mr. Berrard noted that the retailers of the Cross-Continent network have
operating margins that generally are higher than the industry average.
    Commenting on the merger, Mr. Gilliland said, "Our objective has always
been to build an increasingly strong portfolio of dealerships that would
achieve brand, geographic and economic diversity. By joining with Republic,
the leading automotive retailer in America, we are able to achieve that
objective while at the same time aligning ourselves with a company whose
values and strategies we respect. For its part, Cross-Continent brings to
Republic an outstanding group of dealerships with some of the most profitable
and best-situated dealerships in the country."
    Mr. Gilliland and other key executives will sign employment agreements
with Republic.
    Republic Industries, Inc. operates subsidiaries in the automotive
retailing, automotive rental and solid waste industries.  The Company owns the
nation's largest group of franchised automotive dealerships and operates the
AutoNation USA used vehicle megastore chain.  Republic also owns and operates
National Car Rental Systems, Inc., Alamo Rent-A-Car, Inc. and CarTemps USA.