Mobile Mini, Inc. Enlarges Credit Facility to $75 Million

Business Wire, Dec 16, 1998

TEMPE, Ariz.--(BUSINESS WIRE)--Dec. 16, 1998--

To Focus on Rapidly Growing, Higher Margin Lease Business,

Mobile Mini to Scale Back Telecom Shelter and Dealer Network Sales

Mobile Mini, Inc. (NASDAQ National Market: MINI) today announced that its senior lenders, led by BT Commercial Corporation, have agreed to increase the Company's revolving line of credit by 25% to $75 million from $60 million. This is the second time this year that Mobile Mini's line of credit, which remains in force through March 2002, has been enlarged. At the start of 1998, Mobile Mini's borrowing capacity was $40 million, increasing to $60 million in May to today's $75 million, for a total 1998 increase in borrowing power of $35 million. The interest rates and other financial terms of the lending agreement are unchanged.

Separately, Mobile Mini announced that in keeping with its three year strategic plan to focus on its rapidly growing, higher margin container leasing business, it has decided to scale back its slow-growing telecom shelter business and dealer network. The Company does not expect to take a material charge or write-off in connection with these business decisions.

Steven Bunger, Mobile Mini's President & CEO stated, "Nearly two years ago, we exited the business of producing and selling modular buildings, a slow growth, low margin, yet capital intensive business. It was the right decision and we have subsequently turned in seven consecutive record quarters as proof. Telecom shelter and dealer network sales are outside our core business and together contributed 20% of 1997 revenues and 9% of revenues in the first nine months of 1998; also the gross margins on those sales were less than half of those generated by our lease revenues. Although we will not invest further marketing dollars in the telecom shelter and dealer business, we will, for the time being, utilize a small part of our manufacturing capacity to continue to supply shelters and pre-fab containers for some long-standing customers."

Richard Bunger, Mobile Mini's Chairman, noted, "By scaling back our non-core operations, we free up our management and capital resources to build our leasing revenue, both by increasing our market share in existing locations, and by entering new geographic markets, through additional acquisitions and low cost start-ups. In gearing up for the opportunities that lie ahead of Mobile Mini, we recognize that our ability to grow the lease fleet is very much a function of our access to capital and the wise allocation of that capital. The increase in our credit facility serves the former while our scale back of non-core business serves the latter."

Larry Trachtenberg, Mobile Mini's Chief Financial Officer, noted, "By once again increasing our credit line, we have demonstrated that the strong operating results of our leasing business give us the ability to successfully tap the capital markets. This increased line of credit should provide the Company with much of the capital needed for growth over the next 12 months."

Mobile Mini, Inc. is a market leader in the leasing and sale of portable storage containers.

This document may contain some forward looking statements, particularly regarding operating prospects for 1999, which involve a number of risks and uncertainties that could cause actual results to differ materially. These risk factors are listed from time to time in the Company's SEC filings.