Associated Automotive Group To Acquire The Auto Toy Store

FORT LAUDERDALE, Fla., March 4 Associated Automotive Group Incorporated, announced today that it has entered into a letter of intent to acquire the assets of a leading highline automobile dealership in the United States, The New Auto Toy Store, Inc., as well as the ongoing business of a related automobile leasing business, Anthony Leasing, Inc. (hereinafter collectively referred to as ``The Auto Toy Store'').

The transaction is expected to be immediately accretive to shareholder's equity and additive to AAGI's earnings in 2002. Together with the previously announced planned acquisition of Bache Leasing Corp. and Royal Motors of Atlanta, Inc., the transaction will produce a combined company with annual revenues which are estimated to be in excess of $170 million for the twelve months ended December 31, 2001. The Boards of Directors of each company have approved the transaction, which is expected to close within the next sixty days.

The Auto Toy Store was founded in 1982 and is wholly owned by Ray G. Anthony. The Auto Toy Store ( www.theautotoystore.com ) is largely considered the leading retail highline automobile dealership in the United States. The Auto Toy Store boasts a spectacular 20,000 square foot retail showroom in Fort Lauderdale, FL that houses one of the largest inventories of late-model highline and exotic automobiles in the world. Renowned for its diverse inventory and customer service, The Auto Toy Store caters to many of America's professional athletes, Hollywood stars, recording artists and corporate CEOs. Anthony Leasing, Inc., which is also wholly owned by Ray Anthony, sells and leases new and pre-owned automobiles, specializing in luxury imports. The two companies expect to record combined revenues of approximately $70 million for the year ending December 31, 2001.

Under the terms of the agreement, AAGI will pay approximately $20 million in cash plus 1,785,000 restricted shares of AAGI to purchase all of the business operating assets of The Auto Toy Store, including approximately $22 million of inventory, consisting of pre-owned highline and exotic vehicles. A significant portion of the cash component of the purchase price shall be derived from a new floor plan credit facility secured by the inventory. Approximately 750,000 shares of the AAGI shares to be issued as part of the transaction will come from currently issued and outstanding shares of AAGI. AAGI will also have a two-year option to purchase the associated real estate, which includes three buildings.

Commenting on the deal, Barry Tenzer, Chairman of AAGI, stated, ``The acquisition of The Auto Toy Store is expected to quickly become a crown jewel for AAGI. The deal provides AAGI the opportunity to create a national footprint of retail highline automobile outlets bearing the highly recognized brand name, 'The Auto Toy Store'. We plan to acquire or open other retail highline dealerships in demographically desirable areas, each of which will carry 'The Auto Toy Store' brand name.''

Tenzer continued, ``As we implement our plan to become the first national operator of retail highline auto dealerships, we expect to gain significant operating efficiencies and economies of scale. Specifically, we are targeting: 1.) consolidation of overlapping general and administration expenses; 2.) reduction of advertising expenses; 3.) pooling of inventory; 4.) improved purchasing power; and 5.) the ability to provide financing options for our customers, including underwriting equity automobile leases internally.''

This is the fourth acquisition that AAGI has announced. On January 22, 2002, AAGI announced it completed its first acquisition, C&K Auto Imports, Inc., a leading retail highline automobile dealership in Leonia, NJ as well as a highline automobile wholesale operation and service facility strategically located in Hasbrook Heights, NJ. C&K expects to report approximately $23 million in revenue for the year ending December 31, 2001. The C&K acquisition, which is expected to be additive to AAGI's 2002 earnings, provides AAGI with immediate vertical integration adding C&K's wholesale and automobile procurement operation, which will feed late model highline automobiles to AAGI's retail outlets.

On February 6, 2002, AAGI announced it entered into a letter of intent to acquire Bache Leasing Corp. (``Bache''). Located in the South Beach area of Miami Beach, Bache is a licensed and bonded independent automobile dealer and leasing company. Bache has the only automobile dealer license issued to operate in South Beach. Bache expects to report approximately $11 million in revenue and to be profitable for the year ended December 31, 2001. The transaction is expected to be additive to AAGI's earnings in 2002.

On February 7, 2002, AAGI announced it entered into a letter of intent to acquire the assets of the Royal Motors of Atlanta, Inc. (``Royal Motors'') ( http://www.royalmotorcars.com ). Located in Atlanta, GA, Royal Motors is a Rolls Royce and Bentley franchise including new and used car sales, service and parts. Royal Motors also sells pre-owned highline and exotic vehicles and houses a state-of-the-art repair and diagnostic facility staffed with factory- trained and fully certified mechanics. Royal Motors expects to report approximately $20 million in revenue and be profitable for the year ending December 31, 2001. Ray G. Anthony, owner of The Auto Toy Store, also owns Royal Motors.

AAGI was formed to own and operate various highline and exotic car dealerships, accessory and other automotive businesses throughout the United States. AAGI operates through its wholly owned subsidiaries, Motorcars of South Florida, Inc., ( www.motorcarsofsouthflorida.com ) and C&K Auto Imports, Inc., leading retail and wholesale highline and exotic car dealership operations. AAGI's strategy is to become the first national operator of retail highline auto dealerships complete with financing facilities and associated services. AAGI plans to attain a national footprint through strategic acquisition of dealerships as well as organic expansion of its existing operations. Its business plan contemplates it will acquire or open several additional highline dealerships in 2002 and 2003.