PCBM's All Pro Business Unit Enters Multimillion Dollar Transaction

    PITTSBURGH & CLEARWATER, Fla.--Sept. 17, 2001-- Pinnacle Business Management (Pink Sheets:PCBM) announced today that its All Pro Auto Mall business unit, in an effort to eliminate debt and improve market position, has entered into an agreement to move its McMurray, Pa., dealership to Canonsburg, Pa., resulting in clearing all existing property and inventory bank debt, gaining outright title ownership of the new facility and garnering positive cash flow of approximately $700,000.
    The agreement, made with the Vasko Dodge dealership in Canonsburg, entails the sale of All Pro's McMurray location, in exchange for the purchase of the Vasko Dodge Canonsburg location. In addition to the property purchase/ exchange, the All Pro Auto Mall business unit, upon closing, will: have the outstanding mortgage loan of approximately $1,150,000 on the McMurray location paid off; have the balance of the $1,000,000 bank floor plan liability paid off, resulting in ownership of current inventory and the "buy here pay here" portfolio; receive the title to the Canonsburg facility valued at almost one million dollars; and garner approximately $700,000 dollars in cash. Company stock is not being used in the transaction.
    "As a result of the King's Sales transaction we have maintained our presence on the heavily traveled Route 19 South Highway, while the Vasko Dodge Dealership gives us a presence in the heart of the city of Canonsburg," said Chief Operating Officer, Vincent Lo Castro. "The Vasko agreement combined with our takeover of the King's location, which we began operating as of September 4, now puts us in position to take on the obstacles that stand in the path of the future of this company. Now that's turning adversity into opportunity."
    Lo Castro continued, "Once again we are taking steps to significantly strengthen our market position and growth, while adhering to our philosophy of not using company stock as currency to help it grow."
    The new Canonsburg facility encompasses a full city block and currently includes two auto dealerships -- a "Five-Star Dodge dealership" which includes an indoor, six-vehicle new car showroom, an outdoor display area, parts department and 10-bay service department; and a stand-alone used car dealership that consists of an indoor, three-vehicle showroom and an outdoor show facility. The purchase also includes rental property consisting of one single-family rental home, one single-bedroom rental apartment above a car detailing facility, and two, two-bedroom duplexes.
    Lo Castro said he expects to relocate to the Canonsburg location on or about November 1.
    "With this agreement, we will pay off virtually all our bank debt, have a new location and add hundreds of thousands of dollars to our working capital to support our growth plans. Upon closing, we will eliminate our mortgage and floor plan expense, once again adding to the bottom line. The new location also presents us with a great opportunity for All Pro to be located in the heart of the city among our customer demographic," said Lo Castro. "We will continue to evaluate how we can further develop the adjacent land and rental property."
    "This announcement proves that our leadership team is agile, flexible and creative. They have taken a series of steps to greatly improve All Pro's competitiveness, market share and overall performance in the Pittsburgh area," said CEO, Jeff Turino. "By following strategies like this, we plan to continue to strengthen our market position."