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Crown Group Increases Ownership in Paaco Automotive Group to 80%

10 February 1999

Crown Group, Inc. Increases Ownership in Paaco Automotive Group to 80%; Paaco Opens First Dealership in Houston Market

    DALLAS--Feb. 10, 1999--Crown Group, Inc. today announced that it has acquired an additional 15% ownership interest in Paaco Automotive Group for approximately $1 million in cash and the issuance of 257,811 shares of Crown Group common stock. Crown now owns 80% of Paaco.
    Crown also announced that Paaco has entered the Houston market, with the opening of its first used car dealership in that city. On January 16, 1999, Paaco opened its first Houston dealership at the corner of Interstate 45 and Tidwell Road in the northern section of the city. The company currently has about 80 cars on the site and expects to increase the dealership's inventory to approximately 100 vehicles in the near future.
    "We are very excited about our expansion into Houston, which represents Paaco's first new market outside of the Dallas-Ft. Worth area," commented Larry Lange, Chairman and Chief Executive Officer of Paaco. "Our first Houston dealership is located in an area which has ideal demographics for our largely-Hispanic customer base and excellent visibility on the busy Interstate 45 corridor. We plan to open our second used car dealership in Houston by March 1st and hope to expand our presence in that market during the balance of the year. We believe that Houston can ultimately develop into a dynamic market which is comparable to the Dallas-Ft. Worth area in its contribution to our company's sales."
    Paaco currently operates eight used car dealerships in the Dallas-Ft. Worth area. The dealerships, which cater primarily to an Hispanic clientele, provide installment financing for over 95% of the automobiles which are purchased by its customers. A vertically integrated company, Paaco assures the quality of the cars sold by its dealerships through the adherence to strict purchasing criteria and by thoroughly reconditioning vehicles, prior to sale, at its centralized facility in Dallas.
    "We have been very pleased with Paaco's performance since we first invested in the company in February 1998, and we have great confidence in management and Paaco's potential to expand beyond its traditional Dallas-Ft. Worth market," stated Edward R. McMurphy, President and Chief Executive Officer of Crown Group, Inc. "Paaco's sales should approach $70 million in our fiscal year ending April 30, 1999, and we believe that expansion in existing and new markets will allow growth to continue at an impressive rate well into the 21st Century."
    Crown Group, Inc. is a publicly traded buy-out firm which seeks to enhance shareholder value through the acquisition, development and operation of small-cap companies with significant growth potential. Crown Group currently owns (i) 100% of America's Car Mart and 80% of Paaco Automotive Group, vertically integrated used car sales and finance companies; (ii) 100% of Precision IBC, a firm specializing in the sale and rental of intermediate bulk containers; (iii) 80% of Concorde Acceptance Corporation, a sub-prime mortgage lender; (iv) 49% of Casino Magic Neuquen, a casino operator in the Province of Neuquen, Argentina; and (v) 80% of Home Stay Lodges, a partnership which is involved in the development and operation of extended-stay lodging facilities.
    Crown Group, Inc. is headquartered in Dallas, Texas, and its common stock is traded on Nasdaq under the symbol "CNGR".

    This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changing economic conditions, changes in interest rates, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon lenders, and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.