The First American Corporation Announces Launch of First Advantage Corporation
� Successful Merger of First American�s Screening Businesses With US SEARCH.com Creates New Screening Industry Leader �
June 5, 2003, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation�s leading diversified provider of business information and related products and services, today announced the launch of a new company, First Advantage Corporation, that will begin trading Class A common stock as �FADV� on the NASDAQ National Market System on June 6, 2003. First Advantage Corporation was created through the June 5, 2003, merger of First American�s screening information operations with US SEARCH.com Inc., one of the nation�s most recognized providers of location, verification and screening services.
As a result of the merger, US SEARCH.com Inc. and the screening businesses of The First American Corporation have become wholly owned subsidiaries of First Advantage Corporation. Under the terms of the transaction, the former stockholders of US SEARCH received 0.04 of a Class A common share of First Advantage for each share of US SEARCH owned prior to the merger. The former stockholders of US SEARCH will hold approximately 20 percent of the total shares of First Advantage. The First American Corporation will receive Class B common stock, entitling 10 votes for each share, representing approximately 80 percent of First Advantage�s total equity.
First Advantage Corporation is immediately established as a leader in the screening industry, ranking among the top three companies in nearly all of its business lines. First Advantage offers multiple products and services including: employment background screening; drug-free workplace programs, physical exams and other occupational health testing; motor vehicle driving records reporting; resident screening; and consumer location services. Through this combination of businesses, First Advantage Corporation expects to have revenues of approximately $170 million in 2003 and anticipates long-term annual growth of 20 percent.
�First Advantage comes out of the starting blocks in a very strong competitive position by offering single-source solutions for enterprise and consumer screening and risk mitigation needs,� stated John W. Long, chief executive officer of First Advantage Corporation. �We are immediately able to leverage the strengths and solid client bases that First American and US SEARCH have built during the past several years, providing us with the robust critical mass necessary to realize efficiency in our information-based businesses. This places us in an excellent position for future margin improvement through added volume and growth by strategic acquisitions.�
�The combination of financially strong companies, guided by dynamic leaders, provides sound assurance to shareholders that the potential for continued growth is quite strong,� said Parker S. Kennedy, president of The First American Corporation and chairman of First Advantage Corporation. �We anticipate rapid growth for First Advantage, and we are confident that its management team is well prepared to lead it toward the stated goal of becoming the screening industry�s premier provider.�
With nearly 1,000 employees, First Advantage Corporation will be headquartered in St. Petersburg, Fla., and will have a nationwide reach with offices in Denver; Los Angeles; Concord and Sacramento, Calif.; Milwaukee, Wis.; Washington D.C.; and Bangalore, India. Further details are available on First Advantage�s Web site at www.FADV.com.
About The First American Corporation
The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation�s leading diversified provider of business information, the company supplies businesses and consumers with the information resources that affect the major economic events of people�s lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $4.70 billion in 2002, First American has approximately 25,000 employees in more than 1,400 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.
Certain statements made in this press release, including those relating to 2003 revenues, long-term annual growth rates and the pace of First Advantage's growth are forward-looking. Risks and uncertainties exist which may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: general volatility of the capital markets and the market price of First Advantage's Class A common stock; First Advantage's ability to successfully raise capital; First Advantage's ability to integrate the businesses brought together in the June 5, 2003, merger with US SEARCH.com Inc. and the FAST division of The First American Corporation; First Advantage's ability to identify and complete acquisitions and successfully integrate businesses it acquires; changes in applicable government regulations; the degree and nature of First Advantage's competition; increases in First Advantage's expenses; continued consolidation among First Advantage's competitors and customers; unanticipated technological changes and requirements; and First Advantage's ability to identify suppliers of quality and cost-effective data. The forward-looking statements speak only as of the date they are made. Neither the company nor First Advantage undertakes to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.