Rush Enterprises Announces the Acquisition of a GMC and Isuzu Medium-Duty Dealership in Orlando

Business Wire, August 4, 2005

SAN ANTONIO, Texas -- Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, Texas, today announced that it has acquired certain assets of Fountain Motor Co., Inc.'s ("FMC") GMC and Isuzu medium-duty truck dealership in Orlando, Florida. In addition to Rush's existing Peterbilt and UD dealership in the Orlando area, this acquisition provides Rush with the rights to sell GMC and Isuzu medium-duty trucks and parts in Orlando and increases the Company's operations to 45 truck locations in 9 states.

The net cost of this acquisition to the Company was approximately $2.8 million, with the purchase price paid in cash. Pending approval from the State of Florida Division of Motor Vehicles, Rush intends to add Peterbilt and UD products to the new Orlando dealership and to operate the facility as a full-service Rush Truck Center offering heavy-duty and medium-duty trucks, parts and service.

In making this announcement, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, Inc., said "As we have stated before, we are committed to increase our medium-duty presence in our existing areas of responsibility. This acquisition enables us to offer a full breadth of heavy-duty and medium-duty trucks, parts and service in a market that we believe has great growth potential. We are excited about working with the good people from FMC and look forward to offering our consistently high-quality products and services from an additional dealership in the Orlando area."

About Rush Enterprises

Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, Texas. Its operations include a network of 45 Rush Truck Centers located in Texas, California, Oklahoma, Colorado, Arizona, New Mexico, Alabama, Florida and Tennessee. The Company has developed its Rush Truck Centers and its Rush Equipment Center as "one-stop centers" where, at one convenient location, its customers can purchase new or used trucks or construction equipment, purchase insurance products, purchase aftermarket parts and accessories and have service performed by certified technicians. For additional information on Rush Enterprises, Inc., please visit www.rushenterprises.com.

Certain statements contained in this press release are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, competitive factors, general economic conditions, cyclicality, economic conditions in the new and used truck markets, state approval of dealership licenses, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein and in filings made by the company with the Securities and Exchange Commission.