ADESA Corporation announces acquisition of Gulf States Auto Auction

Business Wire, Nov 1, 1996

INDIANAPOLIS--(BUSINESS WIRE)--Nov. 1, 1996--ADESA Corporation, the nation's third largest provider of wholesale vehicle remarketing services and wholly-owned subsidiary of Minnesota Power today announced the acquisition of Gulf States Auto Auction (GSAA) in Dallas, TX from The Friedkin Companies.

"This acquisition is consistent with our strategic plan to accelerate the growth and profitability of ADESA and improve operating efficiencies," said Jim Hallett, president and chief executive officer of ADESA.

Located in the Dallas suburb of Mesquite, GSAA will be known as ADESA Dallas. GSAA is situated on a 31-acre site and is equipped with 6 lanes and full service reconditioning and detail facilities. The auction has been in operation since 1990 and, in three of the last four years, it has ranked as the top volume program car auction for Toyota Motor Sales, U.S.A.

"GSAA has proven to be one of the foremost independent automotive auction operations in the country," said Jerry Pyle, director of The Friedkin Companies and president of its subsidiary, Gulf States Automotive Group. "We recognize that the auction business is consolidating. This sale allows us to focus on other high growth areas of our business."

"ADESA has now expanded its presence in Texas to four auctions, including locations in Austin, San Antonio, Houston and Dallas. Texas is the second largest truck and third largest automobile market in the U.S. We are excited to support our commercial customers and dealers with this latest addition to the ADESA network," Hallett said.

The Indianapolis-based auto auction services company now has 24 facilities in North America.

ADESA Corporation owns and operates auto auctions and provides related services, through which used cars and other vehicles are sold to franchised automobile dealers and licensed used car dealers.

The Friedkin Companies is a Houston-based company with diversified holdings including Gulf States Toyota, the independent Toyota distributor serving 140 dealers in Texas, Oklahoma, Arkansas, Louisiana and Mississippi.

Minnesota Power is a diversified Company with headquarters in Duluth, MN. Principal businesses include electric utility operations in Minnesota and Wisconsin, water utilities in Florida and the Carolinas and ADESA Corporation. Minnesota Power's common stock is traded on the New York Stock Exchange under the symbol MPL.

CONTACT: ADESA Corporation, Indianapolis

Warren Byrd, 317/862-7220