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LKQ Corporation Builds National Network of Automobile Dismantlers

6 September 1999

LKQ Corporation Builds National Network of Automobile Dismantlers To Distribute Quality Recycled Original Equipment Auto Parts

    CHICAGO, Sept. 3 -- With the price of new automobiles
increasing, the average age of vehicles in use increasing, and everyone from
vehicle owners to automobile insurers seeking ways to reduce the cost of
vehicle repair, Chicago-based LKQ Corporation delivers a solution.  Formed in
early 1998, LKQ Corporation has built a network of nearly 50 automobile
recycling plants and distribution facilities that serve 55 of the nations top
75 markets.
    Company CEO Joseph M. Holsten says: "Two years ago we recognized a number
of converging pressures from consumer groups demanding original equipment
quality repair parts in both insured collision repair and customer paid
mechanical repair; automobile insurers seeking quality lower cost alternative
parts to help reduce the severity of claims and thus control customer premium
costs and finally growing US social awareness and support for manufacturers
'cradle-to-grave' disposition responsibility of total loss or end of life
vehicles.  Since then, we have been building a company that delivers quality
recycled auto parts to the collision and mechanical repair industries at
substantial savings relative to new OEM parts and superior quality to many
'aftermarket' alternatives."
    Holsten stated the auto recycling industry is highly fragmented and there
is a high degree of variance in quality of management and operations.  "Our
strategy is straight-forward.  Build a national network by acquiring the
highest quality automobile recyclers in each of the major regions in the
United States.  Bring more science than art to the business through the use of
additional technology, management systems and the application of best
practices.  Expand our markets by educating the collision and mechanical
repair industries and the consumer on the quality and value of recycled auto
parts, and finally, raise the standards for customer service, warranty support
and environmental compliance.  Our commitment to our customers is quality,
service and value -- guaranteed."
    Since its inception, LKQ Corporation has acquired nearly 30 companies with
50 dismantling plants and distribution facilities.  The Company has combined
professional management with the entrepreneurial spirit and operational
experience of the nation's most successful and reliable automobile recyclers.
In doing so, LKQ Corporation has taken the industry lead in serving its
customers by building a national network that draws upon an extensive
inventory of high quality recycled auto parts.
    Auto collision repair in the United States represents an industry of
approximately 50,000 shops and an estimated market of $24.8 billion in 1998,
according to a January 1999 industry review by Collision Insight.  The auto
recycling industry comprises an estimated 11,000 to 12,000 independent
companies and total revenue is estimated to be $8 billion to $10 billion.