PanAmerican Signs Letter of Intent to Acquire Lexor International

    CALGARY, Alberta--Oct. 17, 2001--PanAmerican Automotive Corporation (OTC-PAAT) is pleased to announce that it has entered into a Letter of Intent to acquire 100% of Lexor International, Inc., a Maryland corporation, in exchange for common stock in PanAmerican Automotive Corporation.
    Under the terms of the LOI, Lexor and PanAmerican will enter into a definitive agreement for the closing of the transaction, subject to satisfactory due diligence and consent of the boards of directors and majority shareholders of both companies. Upon closing the current board of directors will resign their positions and Lexor International, Inc. management will be appointed to the new board.
    It is anticipated that the direction of PanAmerican's business will then change from the automotive sector to the manufacturing and sales sector of the leisure and personal healthcare industry. Pan-American also anticipates taking the steps necessary to register all of its shares and to apply with the appropriate regulatory authorities to become a fully reporting company after the completion of this transaction.

    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.