PanAmerican Automotive Corp. Reports that the Letter Agreements Will be Terminated

    CALGARY, Alberta--April 20, 2001--PanAmerican Automotive Corp. (OTC-PAAT) reports that by mutual agreement the Letter Agreements announced by the company on Feb. 15, 2001 will be terminated.
    At this time, parties to the agreements were not able to come to an agreement on certain issues in regards to the closing of the transactions despite a mutually agreed upon extension of the closing date. Negotiations are presently continuing amongst all concerned parties to these transactions and it is the hope of PAAT that a new agreement will be reached and agreed upon in the future.
    PanAmerican is pleased to announce that discussions and negotiations are continuing in regards to several of its licensed territories and the company expects to be able to announce an update of these activities in the near term.
    The company is now in the process of hiring an Internet consultant to assist the company in designing a corporate Web site and to assist the company in the implementation of an effective Internet based investor awareness program.

    This press release contains forward-looking statements within the definition of section 27A of the Securities act of 1933, as amended and such section 21E of the securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision.