First Fleet Corporation Demystifies The Like-Kind Exchange Phenomenon

Innovative Tax Leveraging Technique Helps Clients Realize Annual Savings of 20%

FORT LAUDERDALE: – January 28, 2004 – First Fleet Corporation today credited its  “Like-Kind Exchange” approach to asset financing as its secret weapon in the company’s advancement as a leader in asset management and financial consulting for the trucking industry. 

“The key to any successful business is figuring out what business you’re really in,” said John J. Flynn, chairman, CEO & president, First Fleet Corporation.  “We recognized that our clients appreciated not only our expertise in the trucking industry, but also our unique ability to help them save thousands of dollars based on sound financial procedures.” 

Long considered a technique relegated solely to accounting procedures in the real estate industry, First Fleet Corporation employs a strategic and legally sound system that allows its clients to dispose of its trucking assets without suffering tax penalties.  By swapping their inventory for vehicles of “like-kind,” First Fleet’s clients avoid the burden of tax penalties that would be imposed had the assets been sold.

“We at First Fleet consider it our ‘secret weapon’ in terms of client service because our clients reciprocate with their loyalty.  We’re talking about a program that saves our clients 2-3%  of after tax net present value on average,” Flynn added.

The “like-kind exchange” approach also provides the added benefit of year-round tax leveraging since transportation companies’ operational needs rarely coincide with accounting procedures.

“The transportation industry strives to increase its profitability through expense management and leasing options that will increase efficiency and productivity,” said Flynn.  Our like-kind exchange program provides the ultimate benefit of year-round tax leveraging, making for one less obstacle in the race to profitability.”

About First Fleet Corporation: Fort Lauderdale-based First Fleet Corporation, a subsidiary of PHH Arval, is a national provider of asset management, financial services and high technology operational support to the trucking and transportation industry throughout North America.  The company currently owns or manages more than 15,000 trucks, tractors and trailers for a number of Fortune 500-level companies, including BP Amoco, DaimlerChrysler, Delta Airlines, Ford, Kraft, Maytag, Hormel, and Tropicana.  First Fleet is located at 350 East Las Olas Boulevard, Fort Lauderdale, FL.  For more information, contact First Fleet Corporation at (954) 761-9700.