Copart, Inc. Enters into a Definitive Agreement to Acquire Simpson Bros. Salvage in the United Kingdom.

FAIRFIELD, Calif. -- Copart, Inc. (NASDAQ:CPRT) through its subsidiary in the United Kingdom (UK) today announced that it has entered into a definitive agreement to acquire Simpson Bros. Salvage in the UK. This latest addition to Copart's growing UK footprint will mark the company's 11th facility in the United Kingdom and its 139th worldwide.

Simpson Bros. Salvage operates on a 42-acre site located at Full Sutton Industrial Estate, Stamford Bridge, York in the UK. Copart expects the acquisition to be completed by early April.

"We expect this facility, when acquired, to greatly expand our operational capacity and enhance our coverage of the UK," stated Willis J. Johnson, Chairman and CEO of Copart. "It will also expand our footprint so we can better serve our customers by being closer to their vehicles."

Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of vehicle remarketing services to process and sell salvage vehicles through a completely virtual auction-style trading platform, principally to licensed dismantlers, rebuilders and used vehicle dealers and exporters. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company currently operates 138 facilities in the United States, Canada and the United Kingdom. It also provides services in other locations through a network of independent salvage vehicle remarketers.

Cautionary Note About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, and these forward-looking statements are subject to substantial risks and uncertainties. In particular, statements concerning expansion of our operational capacity and coverage in the United Kingdom are subject to the closing of the acquisition, which is subject to the seller's delivery of stock and certain assets, and numerous business risks affecting our business in the United Kingdom and North America. Our business has become increasingly reliant on proprietary and non-proprietary technologies, and it is difficult to forecast with accuracy what impact these changes in our business model will have. We depend on a limited number of major suppliers of salvage vehicles. If we are unable to maintain these supply relationships, our revenues and operating results would be adversely affected. We have only recently entered the United Kingdom market through several acquisitions. We do not have any historic experience operating outside of North America, and we may experience challenges adapting our business model to international markets and integrating the acquired businesses. In addition, our revenues, operating results, financial condition, and growth rates are subject to numerous other risks, including our ability to complete and integrate new acquisitions, environmental and regulatory risks, and the other factors described under the caption "Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We encourage investors to review these disclosures carefully.