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REPOSSESSION AUCTION INC. TO ENTER CENTRAL AND SOUTH AMERICA

 MIAMI, Nov. 18 ~PRNewswire~ -- Repossession Auction, Inc. (NASDAQ-NMS: REPO) today announced that it is about to directly enter the Central and South American markets for used vehicles through a facility operated in the duty-free zone in Panama.
 The company believes that it will be the largest domestic used vehicle exporter to the Central and South American markets. The company through an affiliated corporation in Panama, Duty Free Cars and Trucks of Panama, Inc., will operate a high-volume auto auction facility at the Panama International Airport. The facility consists of approximately two acres, including office and warehouse space, which the affiliate has leased for four years. The company's affiliate includes Frank Morrice, the owner of one of the largest insurance agencies in Panama, Ford and Morrice Insurance, Inc.
 Mr. Ford is the vice president of Panama. Lloyd Lyons, the company's chief executive officer, and David Zebrovious, vice president, will supervise the company's overseas operations. The company currently sells 25 percent to 30 percent of its vehicles at its Miami location to exporters from the various South American companies. The Panama facility will greatly expand the company's penetration in the used vehicle markets in Central and South America.
 Panama is the largest free port in the western hemisphere. Its location enables auto buyers from Nicaragua, Costa Rica and El Salvador to purchase vehicles and either drive the vehicles to their home facilities or ship them from Atlantic or Pacific ports.
 The company's affiliate will hold bi-weekly auctions in the duty- free zone. The affiliate also plans to sell used auto parts and broker the sale of new cars and trucks in the duty-free zone. The company's affiliate has a tentative commitment from one of the largest Nissan dealers in Panama to purchase a large volume of used cars on a monthly basis. The affiliate has established banking relationships with Chase Manhattan Bank, N.A. of Panama and has been approved for political unrest insurance with respect to the operations of the affiliate. The company is making preparation for shipping 550 used vehicles to the Panama facility within 30 days.
 The auto auction is expected to be operational on or before Jan. 1, 1993. The company expects to ship 500 used vehicles a month to Panama and foresees no problem in obtaining supplies. The company has chartered a vessel to transport the vehicles to Panama which is expected to minimize its unit shipping cost. The company's affiliate has purchased ten car carriers with a capacity to transport 70 units per trip from the Colon Port in Panama to the location of the auto auction site at the Panama International Airport. The company believes that the market for used vehicles in Panama is favorable for the foreseeable future. As an indication of the used vehicle market in Panama, the company refers to the U.S. Department of Commerce 1992 report on Panama's automobile industry analysis which states:
 After the installation of a democratic government in Panama, late in 1987, the economy began a recovery process that is being reflected in several areas, particularly in the commercial sector. The market for passenger cars has shown a strong performance during the last two years, and the sales prospects for the next three years are particularly attractive as consumer spending is high especially in durable goods. It is expected that the passenger car market will grow at the annual rate of 10 percent during the 1991~1993 time period.
 Panama offers good climate for automobile exporters because Panama has no import or exchange restrictions, the U.S. dollar is local currency and there are no environmental or safety regulations. Import taxes on automobiles have been lowered recently on an average of 20 percent from previous levels, and expected to go lower.
 -0- 11~18~92
 ~CONTACT: Lyod Lyons of Repossession Auction, Inc. 305-756-1000~
 (REPO)


CO: Repossession Auction, Inc. ST: Florida IN: SU:

AH-PS -- NY048 -- 2396 11~18~92 13:29 EST
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Publication:PR Newswire
Date:Nov 18, 1992
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