Central Parking Corporation Expects Approximate 10% Gain in First Quarter Earnings; Board Approves Stock Repurchase Plan.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 18, 2000

Central Parking Corporation (NYSE:CPC) today indicated that it expects to report earnings for its first fiscal quarter ended December 31, 1999 (excluding merger costs, integration-related expenses and real estate transactions) approximately 10% higher than the $10.1 million, or $0.27 per share diluted, in the year-earlier quarter (restated to include the results of Allright Holdings, Inc.). The Company said that it plans to report complete results for the first quarter as scheduled on February 10, 2000. Central Parking Corporation also announced that its Board of Directors has authorized the use of up to $50.0 million to repurchase the Company's common stock. The repurchase authorization is subject to approval by the Company's bank lenders. Subject to availability, the repurchases may be made from time to time in open market transactions or in privately negotiated off-market transactions at prevailing market prices that the Company deems appropriate. Shares repurchased will be reserved for later reissue in connection with general corporate purposes, including possible future acquisitions. Central Parking Corporation currently has 37.1 million shares of common stock outstanding on a fully diluted basis.

Monroe Carell, Jr., Chairman and Chief Executive Officer, said, "We are benefiting from the expected assimilation of the Allright operations and are realizing continued marketing gains. We therefore expect results for fiscal 2000 will represent significant progress in net earnings compared with the prior year, but the gain will likely be less than we earlier expected. We are experiencing cost variances, and the pace of our internal growth is proving to be somewhat below our targeted levels. General and administrative expenses are benefiting from the synergies related to Allright, but these are being offset in part by higher systems and personnel costs to support the substantial expansion that has occurred in our operations. Our emphasis in cities where we expanded our operations, as a result of the Allright transaction, was understandably initially focused on blending the operations to ensure continued high customer service. During the first quarter, we were able to begin directing more managerial resources toward marketing plans, and we are still obviously at an early point in the fiscal year. We are in fact showing gains in virtually all of our major markets and will be working diligently over the remainder of this year to capitalize more fully on the potential for our combined organization. At the same time, we are committed to making the necessary investments in corporate systems and other centralized resources for a platform to support Central Parking Corporation's further long-term growth. The expense of these projects are restricting our bottom-line progress over the immediate term, but these are assets that will be vital to our ongoing corporate progress in coming years."

Carell added, "We have taken advantage of a number of strategic opportunities to capitalize on the consolidation in the parking services industry. This has reaffirmed Central Parking Corporation's leadership and positive vision for the future. Most of the absolute growth represented by these acquisitions has occurred in just the past two fiscal years. We understand the challenge presented by a virtual tripling in our size during this period and are confident that the steps we are taking will position us strongly to extend the Company's long-term record of growth.

"We are pleased that the Board of Directors has endorsed the Company's prospects by unanimously approving to use a portion of the Company's capital to repurchase our shares. We have the advantage of a sound financial position which combined with the outlook for a strong cash flow from operations will allow us to implement this repurchase program while continuing to execute our growth strategy."

Central Parking Corporation, headquartered in Nashville, Tennessee, is a leading provider of parking services. The Company operates approximately 4,795 parking facilities containing more than 1.6 million spaces at locations in 40 states, the District of Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland, Chile, Germany, Mexico, Poland and Spain.

This press release contains projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurance can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission.