Crown Group Enters Into Agreement to Purchase America's Car-Mart, Inc.; $52 Million Company to Expand Crown's Participation in 'Buy-Here Pay-Here' Used Car Industry.

DALLAS--(BUSINESS WIRE)--Dec. 2, 1998--Crown Group, Inc. (Nasdaq:CNGR) today announced that it has entered into a definitive purchase agreement to acquire America's Car-Mart, Inc. ("Car-Mart") for $41 million. The transaction is expected to close in January 1999.

Headquartered in Rogers, Arkansas, Car-Mart is one of the largest "Buy-Here Pay-Here" used car dealers in the United States, with annual revenues approximating $52 million. Car-Mart underwrites, finances and services retail installment contracts generated by its 30 dealerships located in niche markets throughout Arkansas, Oklahoma, Texas and Missouri. Car-Mart presently services over 15,000 retail installment contracts, representing approximately $46 million in net finance receivables. Throughout its eighteen-year history, Car-Mart's management has developed and refined policies, procedures and operating practices which have allowed Car-Mart to become one of the most efficient and profitable companies of its kind. Based upon Car-Mart's operating profits during its most recently completed fiscal year and the capital structure to be employed in the purchase, management expects the acquisition to increase Crown's earnings per share by approximately $0.40 in the first twelve months following the closing of the transaction.

"We are excited to welcome to the Crown family of companies the 200-plus managers and associates of Car-Mart, who have done an exceptional job during the past eighteen years," commented Edward R. McMurphy, President and Chief Executive Officer of Crown Group. "Car-Mart should complement our Paaco Automotive Group subsidiary, and we look forward to the sharing of ideas which should benefit both companies. Car-Mart has developed a strong brand identity with customers in non-urban communities, whereas Paaco has focused upon Hispanic customers in metropolitan markets. Upon completion of this transaction, Crown's annualized revenues from its automotive subsidiaries should exceed $130 million."

Crown Group, Inc. is a publicly traded buy-out firm which seeks to enhance shareholder value through the acquisition, development and operation of small-cap companies with significant growth potential. Such companies can benefit from Crown's financial resources and management expertise. Crown Group currently owns (i) 65% of Paaco Automotive Group, a vertically integrated used car sales and finance company; (ii) 100% of Precision IBC, a firm specializing in the sale and rental of intermediate bulk containers; (iii) 80% of Concorde Acceptance Corporation, a sub-prime mortgage lender; (iv) 49% of Casino Magic Neuquen, a casino operator in the Province of Neuquen, Argentina; and (v) 80% of Home Stay Lodges, a partnership which is involved in the development and operation of extended-stay lodging facilities.

Crown Group, Inc. is headquartered in Dallas, Texas, and its common stock is traded on Nasdaq under the symbol "CNGR."

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changing economic conditions, changes in interest rates, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon lenders, and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.