Crown Group Sells Home Stay Lodge I, Ltd. to Efficiency Lodge, Inc.

DALLAS--(BUSINESS WIRE)--Dec. 3, 1999--

Crown Group, Inc. (Nasdaq National Market:CNGR) today announced that it has sold its 80% interest in Home Stay Lodge I, Ltd., its extended-stay lodging business, to Efficiency Lodge, Inc. for approximately $850,000. The purchase price was paid 25% in cash and 75% in the form of a 5-year promissory note. In connection with the transaction, Crown has been released as a guarantor of Home Stay Lodge's mortgage debt of approximately $5.4 million.

Home Stay Lodge I, Ltd. opened two extended-stay facilities in Pensacola, Fla., earlier this year, and Crown Group announced at the time that a decision regarding further expansion would depend upon the success of the first two lodges. "While the occupancy rates of the first two Home Stay Lodges have reached levels which support the economics of the concept, we believe the long-term return on our investment in the lodging industry would fall short of what we can achieve in our other businesses," commented Edward R. McMurphy, Chief Executive Officer of Crown Group, Inc. "Thus, we decided to sell the lodges and redeploy the proceeds more effectively. The properties were sold for an amount which approximates our investment, and the impact of the transaction upon Crown's income statement will not be significant."

"Our decision to exit the extended-stay lodging industry is consistent with Crown's long-term strategy for the enhancement of shareholder values," continued McMurphy. "We seek to identify business opportunities which have significant growth potential and which can perform in accordance with our return on investment goals, and we shall not hesitate to exit those ventures which appear inconsistent with such objectives. The Home Stay Lodge partnership represented one of Crown's smallest investments, and management felt that our shareholders would benefit from the redeployment of capital in a more productive manner."

Crown Group, Inc. seeks to enhance shareholder value through the acquisition, development and operation of small-cap companies with significant growth potential. Crown Group currently owns (i) 99% of America's Car-Mart, Inc. and 70% of Smart Choice Automotive Group, Inc., vertically integrated used car sales and finance companies; (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) 50.1% of CG Incorporated, S.A. de C.V., which operates two casinos in El Salvador; and (v) 45% of Atlantic Castings, Inc., an investment castings manufacturer of turbine engine components. Crown Group is headquartered in Dallas, and its common stock is traded on the Nasdaq National Market 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, those relating to the development of the Company's businesses, risks associated with acquisitions, continued availability of lines of credit for the Company's businesses, changes in interest rates, changes in the industries in which the Company operates, competition, dependence on existing management, and other risks which are discussed 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.