Copart, Inc. (NASDAQ:CPRT) the largest provider of vehicle salvage disposition services in the United States, today reported results for the quarter ended October 31, 2004, the first quarter of its 2005 fiscal year.

During the first quarter ended October 31, 2004, Copart earned net income of $22.7 million on revenues of $104.1 million. In the same period last year the company earned $15.2 million on revenues of $91.5 million. These represent increases in net income and revenue of 49% and 14%, respectively. Fully diluted earnings per share (EPS) for the quarter was $.24 compared to $.17 last year, an increase of 41%.

During this quarter same store sales, sales from stores owned or open more than twelve months, increased by 13%.

"We are pleased with our financial performance which continues the trend of double digit growth in revenue and earnings," said A. Jayson Adair, Copart's President. "We attribute these results to the impact of VB2, our proprietary virtual auction technology, which we believe has helped to open our sales to buyers worldwide, eliminating the barriers created by time and distance. In fact, sales of vehicles during the first quarter, to buyers outside the state where the vehicle is located, accounted for 46% of total vehicles sold; 26% were sold out of state and 20% were sold out of country.

"We are delighted at how quickly our buyers have adopted VB2 and the operational leverage it creates for them. Our buyers no longer have to waste their valuable time traveling to and attending physical sales. They can bid from anywhere in the world with Internet access. VB2 has provided access to more vehicles for our growing number of registered buyers to bid on. Since the first quarter of our fiscal 2004, our registered buyer base has increased by over 10% to more than 43,000 buyers.

"We are proud of the value that VB2 has brought to our sellers, buyers and shareholders and we strive to continue to develop compelling, innovative and unique products and services to serve our customers."

On Wednesday, December 1, at 11 a.m. Eastern time, Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live at https://cis.premconf.com/sc/scw.dll/usr?cid=vlllrwznnnsvmlnxx. A replay of the call will be available through December 7, 2004 by calling (888) 203-1112. Use confirmation code #876978.

Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company operates 107 facilities in the United States and Canada. It also provides services in other locations through its national network of independent salvage vehicle processors.

NOTE: This press release contains forward-looking statements within the meaning of federal securities laws. Our actual results could differ materially from those projected in these forward-looking statements as a result of a number of factors, many of which are outside our control. Our VB2 Internet sales model was introduced on a company-wide basis during the prior fiscal year and may not continue to have a favorable impact on our results of operations in future periods. Our business has become increasingly reliant on proprietary and non-proprietary technologies, and it is difficult to forecast with accuracy what impact these changes in our business model will have. We depend on a limited number of major suppliers of salvage vehicles. If we are unable to maintain these supply relationships, our revenues and operating results would be adversely affected. In addition, our revenues, operating results, financial condition, and growth rates are subject to numerous other risks, including our ability to complete and integrate new acquisitions, environmental and regulatory risks, and the other factors described under the caption "Factors That May Effect Future Results" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We encourage investors to review these disclosures carefully.