CDK Announces Agreement to Acquire Assets from Western Power & Equipment

Wed February 12, 2003 - National Edition
CEG, Inc. has announced that it entered into an agreement with Western Power & Equipment Corp. to acquire a portion of Western’s business in California and Nevada.

Western Power & Equipment Corp. sells, leases, rents and services construction and industrial equipment for Case Corporation and 30 other manufacturers.

The transaction will involve CDK’s acquisition of approximately $15 million of tangible assets and operations which reported nearly $50 million of total revenue for the year ended July 31, 2002 in exchange for the assumption or replacement of existing debt, a cash payment of $500,000 and a five year promissory note of $500,000. Certain members of Western Power’s management will receive approximately 60% of the post transaction combined entity.

The completion of the transaction remains subject to several conditions including the approval of both companies’ boards, financing transactions including an institutional revolving credit facility and other financing for the purchase, the receipt of other required third party approvals, delivery of audited financial statements of the business to be acquired, additional due diligence and compliance with applicable regulatory requirements.

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