EX-99
2
exhibit9901.txt
Exhibit 99.01
EACO CORPORATION NEWS RELEASE
EACO CORPORATION
2113 FLORIDA BOULEVARD
NEPTUNE BEACH, FLORIDA 32266
(904) 241-9798
FAX: (904) 241-9936
FOR IMMEDIATE RELEASE
Contact:
Edward B. Alexander
President
(904) 241-9798
EACO CORPORATION ANNOUNCES
PROPERTY PURCHASE
NEPTUNE BEACH, FLORIDA - (OTCBB:EACO) EACO Corporation today
announced the purchase of a property in Sylmar, California for
$8.3 million. The purchase was funded using approximately $6.5
million in cash from proceeds of the Company's previously
announced asset sale, plus the assumption of a loan on the
property for $1.8 million with a variable interest rate equal to
price. The purchase was structured as a like-kind exchange
transaction under Section 1031 of the Internal Revenue Code. The
Company projects that completion of this transaction will allow
the Company to defer approximately $1 million in income taxes
that would have been due as a result of the Company's asset
sale.
The property includes two industrial tenants with rental income of
approximately $540,000 per year, with scheduled increases during
their respective lease terms. The Company plans to borrow against
or refinance this property and use the cash proceeds to acquire an
operating business or for other investment strategies.

EX - 99 2 exhibit9901 . txt Exhibit 99 . 01 EACO CORPORATION NEWS RELEASE EACO CORPORATION 2113 FLORIDA BOULEVARD NEPTUNE BEACH , FLORIDA 32266 ( 904 ) 241 - 9798 FAX : ( 904 ) 241 - 9936 FOR IMMEDIATE RELEASE Contact : Edward B. Alexander President ( 904 ) 241 - 9798 EACO CORPORATION ANNOUNCES PROPERTY PURCHASE NEPTUNE BEACH , FLORIDA - ( OTCBB : EACO ) EACO Corporation today announced the purchase of a property in Sylmar , California for $ 8.3 million . The purchase was funded using approximately $ 6.5 million in cash from proceeds of the Company 's previously announced asset sale , plus the assumption of a loan on the property for $ 1.8 million with a variable interest rate equal to price . The purchase was structured as a like - kind exchange transaction under Section 1031 of the Internal Revenue Code . The Company projects that completion of this transaction will allow the Company to defer approximately $ 1 million in income taxes that would have been due as a result of the Company 's asset sale . The property includes two industrial tenants with rental income of approximately $ 540,000 per year , with scheduled increases during their respective lease terms . The Company plans to borrow against or refinance this property and use the cash proceeds to acquire an operating business or for other investment strategies .