Interstate National Dealer Services, Inc. on March 15 announced its first quarter results for the period ended Jan. 31, 2001.

Revenue for the three months ended Jan. 31, 2001 was $12,878,138, compared to $13,232,786 for the same period a year earlier.

Net income for the three months ended Jan. 31, 2001 was $319,515, or $0.07 per share on 4,407,417 diluted weighted average shares outstanding, compared to net income of $416,663, or $0.09 per share on 4,849,486 diluted weighted average shares outstanding for the comparable period a year earlier.

"We are not satisfied by our performance in the most recent quarter," said Chester J. Luby, chairman and CEO. "While we can talk about how the business climate impacted our results, it is our task to effectively manage in these times and deliver improved results.

"Although the current quarter's performance does not bear witness to the actions we are taking, we have responded aggressively to the changing climate and expect that future results will benefit from these efforts," Luby said. "Namely, enhancing our products and methods of delivery to improve sales and monitoring and refining the administrative process to reduce costs. We are continuing to add experienced sales representatives to further penetrate the dealer marketplace."

Luby said Interstate announced a new Web-based Sales Administration Module (SAM) to agents and auto dealers at the National Automobile Dealers Association (NADA) convention in Las Vegas in February. "It is this kind of support and forward looking product that will establish Interstate as a preferred supplier of extended service contracts and warranties," Luby added.

"Notably, our aggressive business approach is combined with conservative financial management that results in a company that is financially secure, able to withstand temporary business slowdowns and positioned to take advantage of opportunities as they arise," Luby said. "With cash and investments of nearly $64 million, or $14.50 per share and a fully diluted book value of $4.79 per share, Interstate maintains its superior financial standing. We continue to have confidence in the company's long term prospects and will continue to repurchase shares as price and market conditions dictate."

About Interstate

Interstate is a nationwide provider of service contracts and extended warranties, primarily for new and used cars and recreational vehicles, as well as watercraft, manufactured housing, motorcycles and other power sport vehicles.

For more information visit www.inds.com and www.warrantydirect.com.