Auto Data Network Announces First Quarter Results

    TUNBRIDGE WELLS, United Kingdom--July 14, 2003--Auto Data Network Inc. (OTCBB: ADNW), a provider of software and real-time data services to the automotive industry, today announced first quarter results for the year ending February 28th 2004.
    Gross revenues for the quarter were $3,322,000 as compared with $128,482 for the corresponding quarter last year. Net income for the quarter was $354,000 as opposed to a Net Loss of ($227,709) for the corresponding quarter last year.
    Chairman and CEO Chris Glover commented, "These results do not fully include results from MAM Software Limited for the full quarter as the company was acquired on April 23rd, 2003. Regardless, the numbers are in line with our pro-forma estimate of $25.4 million of revenues, net income of $2.06 million and EPS of $0.12 for the current fiscal year. If MAM Software had been included for the whole period, the quarter's revenue would have been $5.4 million with net income $523,000 which were ahead of expectations."
    Chris Glover continued, "The group's strategy to develop services for the large automotive after-market sector is on track following the recent acquisition of MAM Software. Accordingly, we will be making further acquisitions that synergistically complement our existing components by focusing on building our aftermarket offering. We believe by focussing on supplying the aftermarket services market, we will allow our clients to build out the lifetime value of their own customers from initial purchase to an extended after-market relationship."

    About Auto Data Network.

    Auto Data Network is a group of established companies which provide software products and services to the automotive industry. The company's main customer base is the auto dealership marketplace. This marketplace consists of approximately 78,000 dealers in North America and 92,000 dealers in Europe. The company estimates that this represents a $15 billion market for Software and Services specifically for auto dealerships. The company supplies a suite of software solutions and services that enable dealerships to run their businesses more efficiently whilst achieving considerable cost savings. The majority of the company's current solutions are focused on serving the aftermarket and finance areas of dealerships. These areas are of particular importance as the aftermarket business is responsible for 48% of a dealerships profits from 12% of their overall revenue. The second most profitable area is vehicle finance and insurance this area contributes 35% of profits from 2% of revenues.

    Safe-harbour Statement

    This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission (SEC).