PanAmerican Automotive Corp. Signs Definitive Agreement to Acquire Lexor International Inc.

    CALGARY, Alberta--Oct. 23, 2001--PanAmerican Automotive Corp. (OTC:PAAT) today announced that it has completed a due diligence process and entered into a Definitive Agreement to acquire 100% of Lexor International Inc., a Maryland corporation, in exchange for 232,761,860 shares of common stock in PanAmerican Automotive.
    Under the terms of the agreement, the closing of this transaction is expected to take place on Nov. 15, 2001, at which time the current board of directors will resign their positions and Lexor International management will be appointed to the new board.
    PanAmerican will then change its name to Lexor International Inc. and focus its core business on the manufacturing and sales of the leisure and personal health-care industry. The new company will also take 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.
    Dan Peterson, president of PanAmerican commented: "It has been my pleasure to have been associated with PanAmerican and I firmly believe that the shareholders of the company will be well rewarded by the new business sector that the company is entering as well as by the guidance of its new management upon closing."
    Christopher Long, chairman and CEO of Lexor International, added: "This transaction will undoubtedly provide an excellent opportunity for Lexor to reach a new level of operation in the near future.
    "Not only will the new company be better positioned to grow internally, Lexor will also intend to acquire assets of complementary businesses through our merger and acquisition strategy in order to create new value for our shareholders and investors."

    About Lexor International

    Lexor International is a leading manufacturer and supplier of premium pedicure spa products. The company is positioned to provide other product lines to the U.S. and international beauty care industry. With headquarters in Baltimore, Lexor International also operates its own manufacturing facilities in Vietnam, an emerging market with high potential for growth.

    Safe Harbor: This release contains forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended and section 21e of the Securities and Exchange Act of 1934, as amended. Those statements include the intent, belief or current expectations of the company and its management team. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Accomplishing the strategy described herein is significantly dependent upon numerous factors, including many that are not in management's control. Some of these factors include the company's ability to attract qualified management, raise sufficient capital, compete against similar companies, and effectively implement its business plan.