LKQ Corporation Announces 2006 Financial Guidance

LKQ Corporation today announced that it expects its 2006 earnings per share after the recent two-for-one stock split and after including its recent acquisition of Transwheel Corporation, to be in the range of $0.72 to $0.76 on a fully diluted basis. This estimate includes approximately a $0.03 per share effect of expensing stock options.

Our 2006 guidance does not include any additional 2006 business acquisitions. However, we do have a solid backlog of candidates to review for potential acquisitions and intend to aggressively pursue businesses that will contribute to long-term stockholder value.

Company Outlook

On March 2, 2006 we are scheduled to report our 2005 revenue and net income, which is expected to be consistent with our previously issued 2005 earnings guidance.

We expect that 2006 organic revenue growth will be in the low double digits, with the balance of the growth being the full year impact of 2005 business acquisitions and our Transwheel Corporation acquisition that closed at the end of January 2006. We expect net income to be within a range of $40.5 million to $42.5 million and diluted earnings per share to be between $0.72 and $0.76. Included in the guidance is an estimated $0.03 per share effect of expensing stock options for the first time.

We anticipate that net cash provided by operating activities for 2006 will be approximately $40.0 million. We estimate our full year 2006 capital expenditures, excluding any future acquisitions we may do, will be approximately $33.0 million. This includes approximately $3.5 million of 2005 planned capital projects that we previously reported to you in our projected 2005 capital, but were not completed by year end and will instead be expended in early 2006. The 2006 capital expenditure budgets also include four major facility expansions, which we believe will contribute to continued strong organic growth in the related markets in 2007 and beyond. Finally, the 2006 capital expenditures include approximately $2.0 million related to consolidating two recycling operations and converting one of these locations to a self-service start up operation.

We estimate the weighted average diluted shares outstanding for the full year 2006 to be approximately 56.0 million, which takes into account our recent two-for-one stock split. These share numbers are estimates and as such will be affected by factors such as any future stock issuances, the number of our options and warrants exercised in subsequent periods, and changes in our stock price.

Annual Conference Call

We will host an audio webcast to discuss our fourth quarter 2005 actual results and our first quarter 2006 financial guidance on Thursday, March 2, 2006 at 10:30 a.m. Eastern Time. The live audio webcast can be accessed on the internet at lkqcorp.com in the Investor Relations section. An online replay of the webcast will be available on the website approximately two hours after the live presentation and will remain on the site until April 2, 2006.