Shelby and AC Once Again Make Automotive History

Shelby and AC Strategic Alliance Paves the Way for the Next 40 Years and Beyond

LOS ANGELES, Oct. 7 -- Carroll Shelby International Inc. and AC Motor Holdings Ltd. announce today that a strategic alliance has been formed between the two companies, thus repeating history by bringing these two hallmark automotive brands back together again. This historic strategic alliance effort is being led by Carroll Shelby International Inc.'s Chairman and Director Carroll Shelby and AC Motor Holdings Ltd.'s Chairman and CEO, Alan Lubinsky. Under this collaboration the two companies will begin working together in all areas of marketing, sales, manufacturing, distribution, and product development. Details of this collaboration will be forthcoming.

The discussions with AC, Britain's oldest surviving car maker, comes on the heels of the announcement that Carroll Shelby has formed an historic partnership with the Ford Motor Company to offer his expertise to Ford Performance Group in a project to jointly develop specialty niche performance products.

About Carroll Shelby International, Inc.

Carroll Shelby International, Inc. is the parent company of Shelby Automobiles and Carroll Shelby Licensing.

Shelby Automobiles Inc. is manufacturing high performance Shelby vehicles under the guidance of the legendary Carroll Shelby and will be involved in prototype manufacturing, design and engineering projects; and plans to increase production and availability of these Shelby products through an expanded dealer network and direct sales under a license agreement with Carroll Shelby Licensing Inc. For more information, call 702/325-4851 or visit the company's web site at www.shelbyautos.com .

Carroll Shelby Licensing Inc., founded in 1988, is the exclusive holder of automotive manufacturer and entrepreneur Carroll Shelby's trademarks and vehicle design rights, which include some of the world's most famous muscle cars and high-performance vehicles, including the car that brought home to the U.S. its first and only FIA World Manufacturers Championship in 1965, the famous Shelby Cobra Daytona Coupe. It also holds trademark rights for Shelby- branded apparel, accessories and collectibles. For additional information about the company or licensing opportunities, call (310) 914-1843, or fax (310) 914-1853 or write to Carroll Shelby Licensing, Inc., 11150 West Olympic Boulevard, Suite 1050, Los Angeles, CA 90064 or visit www.carrollshelby.com .

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward- looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

About AC Motor Holdings, Ltd.

The history of AC dates back more than a century to 1901, when British entrepreneur John Portwine and engineer John Weller designed and built a four- seat touring car, which they exhibited at the 1903 Motor Show at the Crystal Palace in London. Their second effort was a three-wheeled delivery vehicle in 1904 -- the Auto Carrier. By 1907, their first successful passenger car, called the Sociable, was created, bearing the now famous AC emblem. In the 1950's the AC Ace was conceived and many people felt was the nicest British sport car of its time. In the 1960's AC assisted Carroll Shelby in realizing his dream of creating one of the most famous sports cars of the 20th century, the Shelby AC Cobra. To this day the AC brand is well known for its craftsmanship. In 1999 AC produced the largest one-piece carbon fiber automotive body that was used on a production car, the AC Cobra CRS. It weighed about 22 kg without the closures. AC has recently agreed to open a research and development center in Malta and will also be producing certain of its future model range at a facility in Malta. www.acautomotive.info