Coach Industries Group Completes Merger with $160 Million Corporate Development Services, Inc.

DAVIE, Fla.--Oct. 2, 20041, 2004--Coach Industries Group, Inc. (OTCBB:CIGI) ("Coach"), a holding company which, through its subsidiaries, provides financial services and products related to the transportation industry, announced today the completion of the merger with Corporate Development Services, Inc. and its subsidiary companies (collectively referred to as "CDS"). CDS, founded in 2001, based in New York provides contract labor, insurance products and management services for Commercial Fleet Operators throughout the United States. CDS' annual revenues for 2003 were approximately $160 million. In addition, on September 29, 2004, Coach secured a $6 million convertible financing facility from Laurus Master Fund, Ltd., a New York-based institutional fund that specializes in direct investments in growing, small capitalization companies.

Robert Lefebvre, President of CDS and Director of Coach states, "CDS and its subsidiary companies have been reviewing options for an Initial Public Offering for some time. The merger with Coach provides us with the opportunity to accomplish this strategic goal, and to extend our extremely successful business model providing financial services to the Courier Operator industry into the Limousine Operator industry. The array of products and services currently provided to Limousine Operators by Coach, including Commercial Fleet Lease Services, will allow CDS to provide additional services to our existing clients."

According to Paul Gapp, President of Consultech, Inc., a nationally recognized industry expert in resolving Employment Tax issues, "The demand for Commercial Drivers has grown tremendously over the past few years, yet the supply of Commercial Drivers has fallen short of this demand. Affordable financial solutions, including vehicle leases and insurance, are unavailable to these everyday hardworking people through traditional sources. The combination of CDS and Coach will provide Commercial Drivers with access to affordable leasing options and insurance programs that will assist these drivers in creating successful businesses."

"CDS represents approximately 5,000 loyal Independent Operators concentrated in the Courier Industry," commented John Gore, President of Coach Financial Services, a wholly-owned subsidiary of Coach. "We expect to provide services through our strategic partners in the Automotive and Finance Industry, including Ford Motor Company, General Motors and Sovereign Bank that will continue to make life simpler for these clients." Mr. Gore goes on to say, "The merger is truly an example of combining synergistic business plans to create a stronger entity that will provide additional benefits to our current and newly acquired clients, employees and shareholders. The combination of the $6.0 million working capital infusion from Laurus, the acquisition of CDS, and the execution of the strategic initiatives successfully implemented by Coach at the operating unit level establishes Coach as a powerful financial force in the Commercial Fleet Operator Industry. Although there can be no assurances, we fully expect the merger will have an immediate, accretive impact on the revenues of the combined companies."

About Coach Industries Group, Inc.

Coach Industries Group, Inc. is a holding company focused on providing financial services to the Commercial Fleet Operator Industry through its wholly owned subsidiaries: Springfield Coach Industries Corporation, Inc. ("Springfield") (http://www.limoland.com) and Commercial Transportation Manufacturing Corporation ("CTMC"), and Coach Financial Services.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.