Precept Business Services Acquires Garden State Limousine

Business Wire, Oct 5, 1998

DALLAS--(BUSINESS WIRE)--Oct. 5, 1998--

Acquisition Will Add $14 Million in Yearly Revenues, As Precept

Pursues Consolidation Within $12 Billion

Corporate Transportation Industry

Precept Business Services, Inc. (NASDAQ:PBSIA), the nation's largest independent distributor of printed business products and document management services and a provider of corporate transportation services, today announced that it has acquired Garden State Limousine, Inc. for an undisclosed amount of stock and cash. Management indicated that the acquisition of Garden State Limousine should be accretive to Precept's earnings per share on a going-forward basis.

With annual revenues of over $14 million and an operating fleet of approximately 100 vehicles, Garden State Limousine is ranked as the largest limousine company in the State of New Jersey. The company provides town car and executive limousine services for corporate and individual customers throughout New Jersey, including transportation to and from New York City and surrounding airports.

"The acquisition of Garden State Limousine will complement Precept's limousine operations in Westchester, New York and Dallas, Texas, as we pursue our strategy of consolidating the $12 billion corporate transportation industry in the segments we serve," commented David Neely, Chairman and Chief Executive Officer of Precept Business Services, Inc. "We also provide contract shuttle bus transportation services in Cincinnati, Ohio and Detroit, Michigan, and same-day courier delivery services in the Dallas-Ft. Worth area. With the inclusion of Garden State Limousine, the annualized revenue `run rate' of our corporate transportation businesses will exceed $32 million."

According to John Rose, President of Garden State Limousine, "We explored opportunities to join with a number of significant public and private limousine companies, but selected Precept because of its sophisticated management team, extensive ground transportation experience and substantial financial resources." Mr. Rose will continue as President of Garden State Limousine and will also serve as Senior Vice President for the Northeast Region of Precept Transportation Services, LLC, a division of Precept Business Services, Inc.

"We are extremely pleased that Garden State Limousine has joined the Precept family of companies, and we are confident that John Rose will be highly effective in expanding Precept's share of the corporate transportation market in the Northeastern U.S.," commented Ron Sorci, President of Precept Transportation Services, LLC. "We estimate that there are more than 9,000 companies in the highly fragmented chauffeured limousine industry, with no single company controlling more than 2% of the market. We intend to aggressively pursue the acquisition of additional limousine companies in major metropolitan markets throughout the United States."

Precept Business Services, Inc. recently reported in its 10-K filing with the Securities and Exchange Commission, dated September 25, 1998, that its revenues for the year ended June 30, 1998, totaled $123 million and that the Company had cumulatively completed 29 acquisitions since 1991.

Precept Business Services, Inc. is the nation's largest and only nationwide independent distributor of printed business products and document management services. The Company also provides corporate transportation services in Texas, New York, New Jersey, Ohio and Michigan. Recent acquisitions have diversified the Company's revenue base and positioned Precept as a consolidator within the $20 billion printed business products and document management services industry and the $12 billion corporate transportation industry. The Company is headquartered in Dallas, Texas and its common stock is traded on NASDAQ under the symbol "PBSIA".

This press release includes statements which 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 would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report 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.