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Georgia Dealers Auto Auction Partners with Bill Heard Enterprises, Inc.

June 11, 2003

Georgia Dealers Auto Auction in Atlanta says it has developed and delivered a remarketing solution for multi-dealership customers. The auction recently held two customized sales for Bill Heard Enterprises, Inc., running 812 vehicles across the block and selling nearly 700 – or 84 percent – of the vehicles.

According to the company, the success of the sales has led to a formal partnership between Bill Heard Enterprises and Georgia Dealers Auto Auction. Nine Bill Heard dealerships in Georgia, Tennessee, Alabama and Florida send hundreds of vehicles to the auction, where they cross the block in a special Wednesday afternoon sale every three weeks. The next sale is June 11.

“When it comes to managing our inventories, we have to keep them at certain levels,” said David Tucker, who is responsible for used car inventory at three Bill Heard dealerships in Georgia, one in Nashville, Tenn., and another in Sanford, Fla. “The first

sale freed up $7 million in cash flow for the company. Needless to say, we were pleased with the results.”

All of the vehicles are either trade-ins or aged inventory (90-day old vehicles) and

range in value from $2,000 to $20,000. Georgia Dealers runs the units in two lanes; one for those valued at less than $6,000 and one for those valued at $6,000 or more.

“We used to have on-site auctions at our dealerships or we would scatter our vehicles among various auctions, but now we’re taking a more innovative approach to moving our trade-ins – selling at one auction,” said William “Bubba” Phelps, used car director of Bill Heard Huntsville in Huntsville, Ala.

“Not only are we pulling in a larger group of buyers, but every one of our vehicles is getting bids. Our cars are bringing in prices at or above Manheim Market Report (MMR), and that’s something we haven’t been able to achieve in the past. Everyone at

Georgia Dealers is working hard to help us move vehicles, and this partnership is

teamwork at its best,” added Phelps.

“It’s a joint venture,” agreed Pete Palmer, general manager of Georgia Dealers Auto Auction. “The Bill Heard group has to get the cars to the auction, and we have to

move the vehicles across the block and get the dealers in the lanes.”

The partnership is a product of months of discussion between Tucker and several Manheim executives.

“After weighing several options, the Bill Heard group determined that we wanted one account representative in one convenient location working with us, and Manheim delivered with Georgia Dealers Auto Auction,” Tucker said.

Another benefit is the personal, customized approach that the auction takes when marketing and promoting the special sale.

As Phelps said, “They focus all their energy on our sale, which directly impacts our bottom line as a consignor.”

About Manheim Auctions

Manheim Auctions offers services that impact every stage of a used vehicle’s life cycle. These include transaction,

reconditioning and certification services, managed remarketing, end-of-lease-term

management services, vehicle transportation, dealer floor planning, retail inspection and

government auction services. The company also assists auto manufacturers, fleet and

lease companies, banks and other financial institutions in selling their used vehicle inventories. A technology provider to the wholesale auction industry, Manheim says it offers technology tools that help dealers and national consignors handle their remarketing transactions more efficiently.

A wholly owned subsidiary of Cox Enterprises, Inc., Manheim Auctions has more than 32,000 employees at its 124 auctions and related businesses. Manheim is a global remarketing organization with 85 auctions in North America and additional operations in the United Kingdom, Spain, France, Australia and New Zealand.

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