Associated Automotive Group Announces First Quarter Results

FORT LAUDERDALE, Fla., May 21 Associated Automotive Group Incorporated , a holding corporation which was formed to own and operate various highline and exotic car dealerships, accessory and other automotive businesses throughout the United States, announced today operating results for its first quarter ending March 31, 2002.

Revenues for the first quarter of 2002 were $17.2 million, compared to proforma revenues of $18.9 million in the first quarter of 2001, a decrease of 9%. Net loss for the first quarter of 2002 was ($112,256) or ($.01) per share as compared to a proforma loss of ($59,974) the first quarter of 2001. The net loss was attributable to an increase in operating expenses which included certain non-recurring expenses incurred in the reverse merger of the Company completed in January 2002 as well as non-recurring expenses associated with the acquisition of C&K Auto Imports as well as other potential acquisitions.

While a portion of the decrease in revenues was due to a general decline in the economy and consumer confidence after the events of September 11, 2001, a more significant factor was the Company's decision to focus its sales almost exclusively on higher priced, highline and exotic automobiles. In doing so, the Company recorded higher gross margins for the period and expects significant gross margin expansion over time.

Commenting on the results, Barry Tenzer, CEO of Associated Automotive Group, stated, "Given the economic impact of September 11, we are extremely pleased with the results for the quarter. As our revenues and margins are tightly tied to general economic conditions and consumer confidence, we firmly believe that the improving economic environment will lead to comparatively favorable quarterly results in the future."

Tenzer continued, "We are more confident than ever about our plan to become the first national operator of retail highline auto dealerships. By acquiring and consolidating numerous stand alone highline dealerships, we expect to gain significant operating efficiencies through: 1.) consolidation of 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. We are at various stages analyzing and negotiating several significant acquisition opportunities as well as new store locations."

Highlights For Quarter:

In January 2002, AAGI completed the acquisition of C&K Auto Imports, Inc. (www.ckautos.com), a leading retail highline automobile dealership in Hasbrook Heights, NJ as well as a highline automobile wholesale operation and service facility strategically located in Leonia, NJ. C&K reported in excess of $20 million in revenue for the year ending 12/31/01. The acquisition of C&K provides two critically important elements to AAGI's business model: 1.) It provides AAGI with immediate vertical integration adding C&K's wholesale and automobile procurement operation, which will feed highline automobiles to its retail outlets; and 2.) It gives AAGI a significant retail presence in the greater New York City and tri-state area that can be greatly expanded. In February 2002, AAGI entered into a Letter of Intent to acquire Bache Leasing Corp. ("Bache"). Bache has the only automobile dealer license issued to operate in South Beach Miami. Bache expects to report approximately $11 million in revenue and to be profitable for the year ended 12/31/01. The transaction is expected to be accretive to AAGI's 2002 earnings. Subject to execution of definitive agreements and other matters, the transaction is expected to close imminently. Events Subsequent To The End of the Quarter:

In April 2002, AAGI completed a private placement with five accredited investors under which it raised $1,300,000 through the sale of 520,000 restricted shares of its class A common stock at $2.50 per share. In May 2002, AAGI raised $500,000 through the sale of a secured 9% convertible note to Laurus Master Fund, Ltd. The note is convertible into shares of AAGI's class A common stock at $3.09 per share. After completing due diligence, AAGI terminated its previously announced Letter of Intent to purchase the assets of The New Auto Toy Store and the on- going business of Anthony Leasing, Inc. After securing all necessary financing commitments to complete the transaction, AAGI determined that the wholesale value of the The New Auto Toy Store's inventory was materially less than anticipated and that the acquisition would not be accretive to AAGI's earnings. Presently, attempts to renegotiate the terms of the acquisitions have been unsuccessful. Should there be a mutual agreement as to the true wholesale value of the inventory, negotiations may recommence. In May 2002, AAGI announced that Saleen (www.saleen.com) had appointed AAGI as the exclusive dealer for Saleen's S7, America's first true supercar, in Georgia, South Carolina, North Carolina, Alabama, Mississippi and Tennessee, as well the southeastern portion of Florida. As one of only 14 exclusive Saleen dealers in the U.S., AAGI plans to offer the Saleen S7 in each of its highline dealerships within the exclusive marketing territory. Capable of speeds in excess of 200 miles per hour, with a zero-to-60 time under four seconds, the S7 has a MSRP of $395,000. AAGI has already taken deposits for the sale of three S7 automobiles. About Associated Automotive Group Incorporated

AAGI (www.associatedautomotive.com) 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. (www.ckautos.com), 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.