Copart Reports Record Profits for the Fourth Quarter and Fiscal 1997; Fourth Quarter Net Income Increases 21 Percent.

BENICIA, Calif.--(BUSINESS WIRE)--Oct. 7, 1997--Copart Inc. (Nasdaq:CPRT) reported financial results for the fourth quarter and fiscal year ended July 31, 1997.

For the fourth quarter, Copart earned a record $3,346,000, or 25 cents per share, on revenues of $29,588,000 with 98,900 vehicles processed. By comparison, the company reported net income of $2,757,000, or 21 cents per share, on revenues of $31,430,000 with 100,200 vehicles processed for the same period in fiscal 1996.

For fiscal 1997, Copart earned a record $11,993,000, or 90 cents per share, on revenues of $126,276,000 with 410,000 vehicles processed. By comparison, the company reported net income of $11,185,000, or 85 cents per share, on revenues of $118,248,000 with 391,100 vehicles processed for fiscal 1996.

"In the fourth quarter, Copart improved its profitability by decreasing the number of vehicles processed under the Purchase Program," said Willis J. Johnson, Copart's chief executive officer.

"We also are benefiting from significant investments during the year to upgrade facilities and equipment, and to integrate all operations nationwide through a new, proprietary customer and management information system," Johnson added.

"The integration is nearly completed and should provide the platform for continued growth in fiscal 1998 and beyond. We believe the company's financial resources are sufficient to support our planned additions of new facilities in fiscal 1998 as we strengthen Copart's competitive position in key markets around the country."

At July 31, 1997, Copart had working capital of approximately $48,930,000, including cash and cash equivalents of approximately $27,685,000. The company also has a revolving line of credit of $50 million with no outstanding borrowings under this facility as of the end of the fiscal year.

Revenues for the fourth quarter were $29,588,000, a decrease of $1,842,000 from the same quarter last year due primarily to a decrease in the number of vehicles processed under the Purchase Program.

For accounting purposes, the entire gross revenues from Purchase Program vehicles are reported, including corresponding vehicle expense, increasing reported revenue and expense as compared with consignment programs. With the company's Percentage Incentive Program (PIP) and consignment programs, only revenues derived from Copart's fees from transactions are reported.

For the fourth quarter, approximately 38 percent of vehicles sold were processed under the PIP Program, compared with 27 percent in the prior-year period. Due to the timing and size of new acquisitions, market conditions and acceptance of the PIP by vehicle suppliers, the percentage of vehicles processed under this program in future periods may vary.

Copart also reported Tuesday that Joseph M. Whelan, senior vice president and chief financial officer, has resigned to pursue other business interests. The company has not named a successor.

"Joe has been a key contributor to Copart through much of our expansion over recent years," said Johnson. "We wish him well in his new business endeavors."

Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. 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 operates 53 facilities in 26 states.

It also provides services in other locations through its national network of independent salvage vehicle processors. Copart financial and investor communications can be viewed or downloaded through the Internet at http://www.copart.com . -0- NOTE: Except for the historical information contained in this release, other statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors and/or factors affecting future results detailed in the company's Securities and Exchange Commission reports. -0-

                             COPART INC.
                        Financial Highlights
          (in thousands, except per share and other data)

                                          Three Months Ended July 31,
                                               1997             1996

Consolidated Statements
 of Income Data

Revenues                                  $  29,588        $  31,430
Operating expenses                        $  24,831        $  27,331
Operating income                          $   4,757        $   4,099
Net income                                $   3,346        $   2,757
Net income per share                      $     .25        $     .21
Weighted average shares outstanding          13,418           13,254

Other Data
Salvage vehicles processed                   98,900          100,200
Gross proceeds (000)                      $ 134,518        $ 131,916
Number of auction facilities                     53               49


                                                 Fiscal Year Ended
                                                     July 31,
                                               1997             1996

Consolidated Statements of Income Data
 Revenues                                 $ 126,276        $ 118,248
Operating expenses                        $ 107,423        $ 100,446
Operating income                          $  18,853        $  17,802
Net income                                $  11,993        $  11,185
Net income per share                      $     .90        $     .85
Weighted average shares outstanding          13,257           13,216

Other Data
Salvage vehicles processed                  410,000          391,100
Gross proceeds (000)                      $ 537,657        $ 506,916


                                       July 31, 1997    July 31, 1996
Consolidated Balance Sheet Data
Cash & cash equivalents                   $  27,685        $  13,026
Working capital                           $  48,930        $  40,586
Total assets                              $ 175,340        $ 158,066
Total debt                                $   9,753        $  11,260
Shareholders' equity                      $ 142,814        $ 126,245

CONTACT: Copart Inc., Benicia

Investor Relations, 707/748-5003