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Federal Court Jury Finds That Wilhelm Violated Shelby’s Trademarks and Awards Damages

LOS ANGELES--Carroll Shelby Licensing Inc. (CSL), a wholly owned subsidiary of Carroll Shelby International, Inc. (Pink Sheets:CSBI), announced today that the case of CSL and Carroll Shelby (collectively “Shelby”) vs. Jon A. Wilhelm dba Wilhelm Motor Works (“Wilhelm”) has concluded and the jury has awarded damages of $250,000 to Shelby based upon Wilhelm’s intentional and willful counterfeiting and infringement of Shelby’s trademarks “Shelby®” and “GT-350®.”

The jury made nine (9) finds in favor of Shelby. In awarding damages to Shelby, the jury found that Wilhelm had intentionally and willfully infringed on and counterfeited Shelby’s registered trademarks, and failed to obtain the necessary product and marketing approvals required by Wilhelm’s license agreement, when Wilhelm advertised, exhibited and offered 2 vehicles for sale at the Route 66 Rendezvous in September 2005 as authorized “Shelby” vehicles (which they were in fact not). The jury agreed with Wilhelm that Shelby had unreasonably withheld its approval of the first prototype vehicle when Wilhelm submitted it to Shelby in August 2005, even though the evidence showed that (i) Shelby rejected the prototype because it was not built by Wilhelm, and was instead built three (3) years before as a counterfeit vehicle without Shelby’s knowledge, and (ii) after meeting with Shelby’s representatives to discuss the issue Wilhelm reached agreement with Shelby that this counterfeit vehicle would be withdrawn from further consideration as a prototype. Nonetheless, the jury awarded damages to Wilhelm of $250,000 based upon this non-approval by Shelby. Shelby believes this award is subject to legal challenge, and Shelby intends to pursue all appropriate legal review(s).

M. Neil Cummings, Esq., Shelby’s General Counsel, states: “We are very pleased that the jury agreed with Shelby’s trademark infringement and counterfeiting claims against Wilhelm Motor Works. Shelby’s brand and trademarks reach the very heart of the Shelby companies. Shelby will continue to aggressively enforce its intellectual property rights against all infringers. This was the reason Shelby took this case to the courts, and he made his point, emphatically!”

About Carroll Shelby Licensing, Inc.

Carroll Shelby International, Inc.’s (CSBI.PK) Carroll Shelby Licensing Inc., a wholly owned division, founded in 1988, is the exclusive holder of automotive manufacturer and entrepreneur Carroll Shelby's trademarks and vehicle design rights, which include some of the world’s most famous muscle cars and high-performance vehicles, including the car that brought home to the U.S. its first and only FIA World Manufacturers Championship in 1965, the famous Shelby Cobra Daytona Coupe. It also holds trademark rights for Shelby-branded apparel, accessories and collectibles. For additional information about the company or licensing opportunities, call 310-914-1843, or fax 310-538-8189 or write to Carroll Shelby Licensing, Inc., 19021 S. Figueroa Street, Gardena, CA, 90248 or visit www.carrollshelby.com or www.carrollshelbyinternational.com.