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Heafner Announces Proposed Stock Sale

27 April 1999

Heafner Announces Proposed Stock Sale

    CHARLOTTE, N.C.--April 26, 1999--The Heafner Group/J.H. Heafner Company announced today an agreement covering the sale of stock in the Company to Charlesbank Capital Partners, LLC, and certain management changes.
    Charlesbank has agreed to purchase the majority of the equity interests currently held by members of the Gaither family and has offered to purchase interests held currently by outside investors of the Company. After completion of the transaction, Charlesbank will be majority owner of Heafner. Charlesbank is a private equity firm with offices in Boston and New York that manages over $2.1 billion of direct private investment assets. The transaction is expected to be completed within the next two months and is subject to certain regulatory and other approvals.
    In connection with the completion of the transaction, Ann H. Gaither, currently Chairperson of the Board, will retire. William H. Gaither, currently President and CEO, will assume the role of Chairman, and Donald C. Roof, currently Senior Vice President and CFO, will assume the role of President and CEO. The other members of the senior management team will remain in place and be co-investors in the Company.
    "I am very pleased that Charlesbank has elected to invest in Heafner," said William H. Gaither, President and CEO. "They are a very substantial firm with an excellent reputation in the investment community. Charlesbank provides the Company with a strong financial partner which has the equity needed by the Company as we continue to grow and consolidate the replacement tire industry."
    Kim G. Davis, Managing Director and co-founder of Charlesbank, commenting on the proposed transaction, stated, "The Heafner Group has many of the ideal characteristics we look for in an investment: A solid business history, demonstrated growth abilities, and an experienced and talented management team. We look forward to working with Heafner as they continue to implement their strategic plan."
    The Heafner Group is the country's largest independent marketer of tires and tire-related products. The Heafner Group includes Heafner-ITCO Tires & Products in the Southeast, and Competition Parts Warehouse, Winston Tire and California Tire in California and Arizona. It operates over 65 distribution centers and 210 retail tire and auto service stores and has revenues in excess of $1 billion. For information contact Donald C. Roof at (704) 423-8989.