EXHIBIT INDEX
99.1 Company Press Release June 7, 2000, titled "Stewart & Stevenson
Services, Inc. Announces Plan to Sell Natural Gas Compressor Leasing
Business to Hanover Compressor Company."
News From: Stewart & Stevenson
Corporate Headquarters
P.O. Box 1637
Houston, TX 77251-1637
FOR IMMEDIATE RELEASE:
STEWART & STEVENSON SERVICES, INC. ANNOUNCES PLAN TO SELL NATURAL GAS COMPRESSOR
LEASING BUSINESS TO HANOVER COMPRESSOR COMPANY
HOUSTON, TX June 7, 2000 - STEWART & STEVENSON SERVICES, INC.
(NASDAQ:SSSS), HOUSTON, TX a leading manufacturer, distributor, and provider of
service for industrial and energy related equipment, and a manufacturer of
medium tactical vehicles for the U.S. Army, announced today that it has executed
a letter of intent to sell the assets of its natural gas compressor leasing
business to Hanover Compressor Company for approximately $60 million in cash and
notes, subject to adjustment for the total amount of assets actually delivered.
The letter of intent also provides for the strategic alliance of the parties in
which Hanover will purchase gas compression equipment and related support from
Stewart & Stevenson, and Stewart & Stevenson will refer subsequent compression
leasing business to Hanover. The sale is subject to definitive documentation,
government approvals and certain other closing conditions, and is expected to be
completed by July 31, 2000.
Michael L. Grimes, President and CEO of Stewart & Stevenson, said, "Our
compressor leasing business is an established market leader in the Powder River
Basin of Wyoming and we are pleased to combine that business with Hanover. We
believe that the best interests of our customers, employees, and shareholders
will be served by the completion of this transaction."
Stewart & Stevenson will continue to manufacture natural gas compression
equipment for sale within the industry.
Hanover Compressor Company is the market leader in full service natural gas
compression and a leading provider of service, financing, fabrication and
equipment for contract natural gas handling applications. Hanover provides this
equipment on a rental, contract compression, maintenance and acquisition
leaseback basis to natural gas production, processing and transportation
companies that are increasingly seeking outsourcing solutions. Founded in 1990
and a public company since 1997, its customers include premier independent and
major producers and distributors throughout the Western Hemisphere.
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Stewart & Stevenson believes that its expectations, as
expressed in these statements, are based on reasonable assumptions regarding the
risks and uncertainties inherent in achieving those expectations. These
statements are not, however, guarantees of future performance and actual results
may differ materially. The most important factors that may cause actual results
to differ from our expectations are the risks associated with negotiation of a
definitive agreement and receipt of regulatory approval for the sale of the Gas
Compression Leasing Business. Other risk factors are listed in Stewart &
Stevenson Services, Inc. annual report to the Securities and Exchange Commission
on Form 10-K for the year ended January 31, 2000.
Contact: Mr. David R. Stewart, Treasurer
Phone: (713) 868-7657
Fax: (713) 863-1519
Email: [email protected]
HTTP://www.ssss.com
