Crown Group, Inc. Sells 50% Stake in Precision IBC Subsidiary

7 November 2000

Crown Group, Inc. Sells 50% Stake in Precision IBC Subsidiary

    DALLAS--Nov. 7, 2000--Crown Group, Inc. today announced that it has sold 50% of the stock of its wholly owned subsidiary, Precision IBC, Inc., to Van P. Finger, the Founder and President of Precision IBC.
    Consideration for the 50% interest included $2,229,468 in cash and the retirement of 170,170 shares of Crown Group common stock owned by Mr. Finger, valued at $833,333.
    Precision IBC, which is based in Fairhope, Alabama, sells, rents, and services intermediate bulk containers and accounted for approximately 3.0% of Crown's revenues in the fiscal year ended April 30, 2000. Under the terms of the sale, Mr. Finger will remain President of the subsidiary, and the ownership change will have no effect on daily operations.
    "This transaction is consistent with Crown's strategy of focusing upon its automotive retailing and specialty finance businesses," commented Edward R. McMurphy, President and Chief Executive Officer of Crown Group, Inc. "Precision has consistently generated strong cash flows throughout Crown's period of ownership, and we expect the subsidiary to continue growing and contributing to Crown's earnings in the future."