LLO-Gas to Buy ARCO, AM/PM Locations

15 October 1999

LLO-Gas to Buy ARCO, AM/PM Locations

    MALIBU, Calif.--Oct. 15, 1999--Discovery Investments Inc., a Nevada Corporation through LLO-Gas Inc., has entered into a series of agreements to acquire seven ARCO and AM/PM gas stations/convenience stores, for $9.5 million cash.
    The stations include six existing AM/PM-branded stations with full convenience stores, and one "pumper," the industry term for a gas-only station with no other retail operations. Gross revenues of the seven stations is $25 million annually. The company has agreements to retain the ARCO and AM/PM brand identify at all the locations.
    These cash purchases are the next step, after the acquisition of LLO-Gas, in the planned roll-out of Discovery Investments into the national truck-stop and gas station/convenience store market, through strategic acquisitions of viable, existing retail outlets. The company plans to integrate leading-edge information technology, including equipment, to enable centralized management to monitor each facility in near-real-time.
    LLO-Gas has secured $7,750,000 of 15-year financing for the acquisitions from Credit Suisse Group's (CSGKY) CSFC division, as senior lender. The company will be acquiring fixed assets, real estate, inventory and equipment, as well as the franchise to operate the purchased branded stations.
    Company President John Castellucci stated: "The completed acquisition of these seven properties brings us closer to our strategic objectives of entering into the branded station competitive arena. We intend to go head-to-head, initially, in the western region of the United States in which we directly compete with other industry leaders.
    "We have precisely defined objectives in this market. The West Coast represents our first market-penetration target -- the highest traffic market in the country. We are very pleased with these large steps toward that goal."
    The ARCO deal is expected to close on or before Oct. 26, 1999.

    Safe Harbor Information: The above news release contains forward-looking information with the meaning of The Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties. The actual results achieved may differ materially from such statements. It is impossible to predict with certainty whether the acquisition, acquisition financing or other matters related to this news release will be successfully concluded. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or implied) will not be realized.