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Imperial Parking Corporation Announces 2003 Year End Results-Sale of Company results in Non-Cash Goodwill Impairment Charge of $33.5 Million.

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Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 13, 2004

Imperial Parking Corporation ("Impark" or the "Company") (AMEX:IPK) today reported a net loss of $33.5 million, or $18.35 per diluted share, for 2003 compared to net income of $1.9 million, or $1.02 per diluted share, for 2002. The net loss for 2003 results entirely from a $33.5 million goodwill impairment charge recognized to reflect the value established by Impark's recently announced sale to affiliates of The Gates Group LLC, a private investor based in Cleveland, Ohio ("The Gates Group"), for $26.00 in cash per share, subject to reduction in the event that certain of Impark's transaction costs exceed $1.55 million. In addition, Impark incurred $1.5 million of legal and professional fees in 2003 related to assisting a Special Committee of its Board of Directors, formed on January 8, 2003, with the examination of the Company's strategic alternatives following the decision of Gotham Partners to sell its 31% ownership interest in the Company. Pro forma net earnings for the year excluding the $33.5 million goodwill impairment charge and the $1.5 million in transaction related costs decreased by 23.7% to $1.5 million or $0.80 per diluted share, compared to $1.9 million or $1.02 per diluted share in the prior year (see footnote 1 below).

Total revenues increased 10.5% in 2003, to $154.5 million for the year ended December 31, 2003 compared to $139.8 million for the year ended December 31, 2002. Parking and management contract revenues increased 10.8% in 2003, to $121.1 million from $109.4 million in 2002. Of the $11.7 million increase in parking and management contract revenues recorded this year, the Company's Canadian and United States operations contributed $7.7 million and $4.0 million, respectively. The increase in revenue from the Company's Canadian operations was primarily attributable ($5.8 million) to the stronger Canadian dollar with an average exchange rate for the year of C$1.00 equals US$0.71 compared to $0.64 in the prior year. The increase in revenues from the Company's U.S. operations was primarily attributable to the opening of new locations in Milwaukee and Miami.

Cash and cash equivalents increased by $3.7 million in 2003, to $18.8 million from $15.1 million at December 31, 2002. The increased cash position resulted from cash flow from operations of $6.4 million, a decrease in net cash flow from financing...