IPX Interpool

Interpool, Inc. (NYSE: IPX) announced today that the company๏ฟฝs revenues for the quarter ended March 31, 2007 were $92.0 million and that net income for the quarter was $17.7 million. Martin Tuchman, Chairman and Chief Executive Officer, said, "We are very pleased with our first quarter results. We saw significant benefits from the growth in our chassis business that occurred during the second half of 2006. We are also very active on the container side and wrote a considerable amount of new business during the first quarter, a time that is normally seasonally slow.๏ฟฝ Revenues of $92.0 million for the first quarter compared with revenues of $103.0 million for the same period in 2006. Revenues for the first quarter of 2006 would have been $71.5 million excluding the revenues related to the container portfolio sold on March 31, 2006 and to the company๏ฟฝs investment in Container Applications International, a previously consolidated subsidiary. The Company sold its equity interest in CAI on October 1, 2006. Net income of $17.7 million ($0.44 per diluted share) for the first quarter of 2007 compared with $53.3 million of net income for the first quarter of 2006 ($1.65 per diluted share). Net income for the first quarter of 2007 included $2.6 million of after-tax revenue related to the early termination of a lease with one customer, $1.1 million after-tax from the favorable settlement of a state tax review, and $0.8 million after-tax from the receipt of funds held in escrow since the sale of a non-transportation investment during 2005. Excluding those items, net income for the first quarter of 2007 would have been $13.2 million. Net income for the first quarter of 2006 included after-tax income of $10.7 million associated with the container portfolio sold on March 29, 2006, a gain on that sale of $59.3 million, net income of $0.9 million from Interpool๏ฟฝs investment in CAI, non-cash, after-tax expense of $6.7 million from an impairment charge related to the conversion of one customer๏ฟฝs operating leases to direct financing leases, and $5.2 million in non-cash, after-tax expense from an adjustment to the fair value of warrants. Excluding these items, the company would have reported a net loss for the first quarter of 2006 of $5.7 million. After considering the items described above, the improvement from a net loss of $5.7 million in 2006 to net income of $13.2 million in 2007 was primarily attributable to increased revenues in both the chassis and container segments, lower administrative costs, and a significant reduction in debt. As announced previously, on April 20, 2007 Interpool entered into a definitive agreement to be acquired by certain private equity funds managed by affiliates of Fortress Investment Group LLC pursuant to a merger in which all Interpool stockholders would receive $27.10 in cash for each share of Interpool common stock that they hold. The Board of Directors of Interpool, on the recommendation of the Special Committee formed by the Board of Directors, has unanimously approved the merger agreement and recommends that the Company๏ฟฝs stockholders adopt the agreement at a special stockholders๏ฟฝ meeting that will be called to approve the transaction. In addition, Mr. Tuchman and other significant Interpool stockholders have agreed to vote shares equal to 40% of the outstanding shares of common stock of the Company in favor of the adoption of the merger agreement. The transaction is expected to close in the third quarter of 2007 and is subject to the approval of Interpool๏ฟฝs stockholders and other customary closing conditions. The company will hold a conference call on Friday, May 11, 2007 at 10:00 AM Eastern Daylight Time to discuss its first quarter results. Interested investors should call 888-321-3075 ten minutes prior to the time of the conference call. Callers from outside North America please call 973-582-2855 and hold for an operator. Identify yourself and your company and inform the operator that you are participating in the Interpool Earnings Conference Call. If you are unable to access the Conference Call at 10:00 AM Eastern Daylight Time, please call 877-519-4471 to access the taped digital replay. To access the replay, please call and enter the digital pin 8784232. This replay will first be available at 12:00 PM Eastern Daylight Time on May 11, 2007 and will be available until June 11, 2007 at 12:00 PM Eastern Daylight Time. Investors will also have the opportunity to listen to the Conference Call live at the company๏ฟฝs web site www.interpool.com. To listen to the live call via the Internet, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live web cast, a replay will be available two hours after the call is completed and will remain available for thirty days. Interpool is one of the world's leading suppliers of equipment and services to the transportation industry. The company is the world's largest lessor of intermodal container chassis and a world-leading lessor of cargo containers used in international trade. In connection with the proposed merger, Interpool will file a proxy statement with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may๏ฟฝobtain a free copy of the proxy statement (when available) and other documents filed by Interpool at the Securities and Exchange Commission๏ฟฝs website at http://www.sec.gov. The proxy statement and such other documents may๏ฟฝalso be obtained for free from the Financial Reports page on Interpool๏ฟฝs website at www.interpool.com or by directing such request to Investor Relations at (609) 452-8900. Interpool and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from Interpool stockholders in respect of the proposed transaction. Information regarding Interpool๏ฟฝs directors and executive officers is available in its proxy statement for its 2006 annual meeting of stockholders, dated June 21, 2006. Additional information regarding the interests of such potential participants will be included in the proxy statement relating to the merger when it becomes available. Note: This press release and other press releases and information can be viewed at Interpool๏ฟฝs website at www.interpool.com. This Press Release contains certain forward-looking statements regarding future circumstances. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including in particular the risks and uncertainties described in the company's SEC filings. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.