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Republic Industries, Inc. To Acquire Webb Automotive Group

10 February 1998

Republic Industries, Inc. To Acquire Webb Automotive Group

    FORT LAUDERDALE, Fla., Feb. 10 -- Republic Industries, Inc.
announced today that it has signed a definitive agreement to
acquire the Webb Automotive Group of Irvine, California in a transaction
valued at approximately $112 million, payable in cash and/or Republic common
stock.  The transaction includes all related real estate and is subject to
certain conditions, including government and manufacturer approval, and
compliance with a framework agreement between Republic and Toyota Motor Sales,
U.S.A.
    The Webb Automotive Group includes a total of eight dealerships, with
three in Cerritos, three in Irvine and one each in Garden Grove and Buena
Park, California. The dealerships sell Toyota, Lexus, Buick, Ford, and Volvo
automobiles and had combined 1997 revenue of approximately $420 million.
Webb's Cerritos and Irvine dealerships are located in the Cerritos and Irvine
Automalls, respectively, two of the largest automalls in the United States.
The transaction does not include the acquisition of Lexus of Cerritos, at this
time.
    As part of the transaction, Lew Webb, the dealer-principal, will sign a
multi-year employment agreement with Republic.
    The Webb Automotive Group will complement existing automotive retail
businesses in Republic's Southern California district, including Champion
Chevrolet in Manhattan Beach and Magic Ford in Valencia. The company has also
signed a definitive agreement to acquire the Southern California Auto Group,
with dealerships in Anaheim, Costa Mesa, Beverly Hills, Santa Monica, Redondo
Beach, Manhattan Beach, Newport Beach, Torrance and Redlands.  Republic
recently opened an AutoNation USA used car megastore in Irvine, and plans to
open additional AutoNation megastores in Southern California over the next
several years.
    Commenting on the acquisition, Steven R. Berrard, President and Co-Chief
Executive Officer of Republic, said, "Lew Webb is one of the premier
automotive dealers in the United States and the Lew Webb Automotive Group will
add significantly to Republic's growing presence in Southern California. The
acquisition complements our strategy of organizing new and used vehicle
operations into automotive retail districts that will eliminate distribution
inefficiencies and allow us to offer consumers a wide range of vehicles at
very competitive prices.  We are also very pleased about the opening of the
AutoNation megastore in Irvine, which is very close to the Irvine AutoMall,
and we look forward to the opening of additional AutoNation USA megastores in
Southern California."
    Lew Webb said, "We have chosen to partner our future with the new wave in
the automotive industry.  The outlook is encouraging with Republic at the helm
as we depart the harbor on our next adventure."
    Republic Industries, Inc. operates subsidiaries in the automotive
retailing, automotive rental, automotive financial services and solid waste
services industries. The Company owns the nation's largest chain of new
vehicle dealerships and is building a chain of used car megastores that it
operates under the AutoNation brand name. Republic also owns National Car
Rental System, Inc., Alamo Rent-A-Car, Inc., and several other vehicle rental
companies.

SOURCE  Republic Industries, Inc.