Continental American Transportation Inc. announces acquisition of Carpet Transport Inc.

POTTSTOWN, Pa.--(BUSINESS WIRE)--Nov. 16, 1995--Continental American Transportation Inc. (OTC:COAW) announced Thursday that it has signed a purchase agreement to acquire 100% of the stock of Carpet Transport Inc. and two affiliated companies, A&P Transportation Inc. and Chase Brokerage Inc.

The transaction is valued at $17,290,000 in cash, stock, and mortgages.

Continental American Transportation formed a wholly owned subsidiary, Carpet Transport Holdings Corp. to make the acquisition. As part of the agreement, Continental acquired a state-of-the-art trucking facility in Calhoun, Ga., as well as properties in Baton Rouge, La.; Orlando, Fla.; and Tampa, Fla., which were owned individually by the shareholders of Carpet Transport Inc.

The total assets of Carpet Transport Inc. as of June 30, 1995 were $63,753,724, with shareholders equity of $9,845,424. A&P Transportation Inc. reported total assets of $3,028,172 and shareholders equity of $631,111 as of Sept. 30, 1995. Revenues from the operations of Carpet Transport for the fiscal year ended June 30, 1995 were $62,184,269, with net income before taxes of $2,660,561. Revenues for A&P Transportation for the 10-months ended Sept. 30, 1995 were $18,263,635, with net income before taxes of $92,068.

Carpet Transport and A&P Transportation are the trucking industry's premier carriers of textile products. The companies operate 750 late-model tractors and 2,000 late-model trailers through 17 terminals nationwide. The jointly operated state-of-the-art facility in Calhoun, Ga., is considered one of the most modern freight consolidation operations in the United States that specifically serves the carpet and textile industry.

Continental American Transportation Inc. stated that the operations of Carpet Transport and A&P Transportation would remain independent and autonomous. Continental management anticipates no changes to current personnel, equipment purchases or operational procedures of Carpet Transport and A&P Transportation. The two company names will be retained due to their excellent reputation, name recognition, and nationwide customer relations.

On a consolidated pro forma basis, Continental American Transportation expects a seven-fold increase in gross revenues, net income and shareholders equity.

Timothy Holstein, president and chief executive officer of Continental American Transportation Inc., stated: "We are very excited about the marriage of our two companies. Due to the size and nationwide presence of Carpet Transport and its affiliated companies, we consider this a strategic merger rather than an acquisition.

"This combination of interests allows us to further capitalize and grow Carpet Transport in order to meet the increased demands of its customers. From Continental's perspective, this business combination allows us to dovetail other targeted strategic acquisitions."

Continental American Transportation Inc. is an acquisition-oriented company engaged in the management of operating businesses in the transportation, distribution and logistics of wholesale and retail goods.

CONTACT: Continental American Transportation Inc., Pottstown

Bryan Henninger, 610/327-8275

or

Investor Resource Services Inc., Winter Park, Fla.

Dixie Campbell, 407/657-1300