Coach Industries Third Quarter 2004 Revenues Exceed $17 Million

DAVIE, Fla.--Nov. 1, 20046, 2004--Coach Industries Group, Inc. (OTCBB:CIGI) ("Coach") announced that third quarter 2004 revenues increased to $17,648,967 for the third quarter ended September 30, 2004 from $479,587 for the same three month period in 2003. The revenues for nine month period ended September 30, 2004 were $26,780,778, a significant increase from the $687,964 reported for the same nine month period ended September 30, 2003. Gross Profit for nine months ended September 30, 2004 increased by $2.4 million compared to the same nine month period in 2003.

Francis O'Donnell, Chairman and Chief Executive Officer of Coach commented, "Coach Industries Group, Inc. has achieved extraordinary success during our first full year of operations. In addition to assembling synergistic businesses that will simplify the lives of Commercial Fleet Operators and drivers, our very talented management team completed five strategic initiatives during the third quarter 2004 enabling a strong financial performance. We reorganized our manufacturing units to improve operating expense; we created Coach Financial Services to provide leasing services to commercial fleet operators; we entered into a financing agreement with Ford Motor Credit enabling the company to improve our cash position; we merged with Corporate Development Services to create new products for our customers; and we completed a debt financing agreement with Laurus Master Fund, Ltd. that provides the company with growth capital."

O'Donnell further commented, "The completion of these initiatives significantly improved our financial position. The cash position of our company improved by over $3.2 million; Total Assets increased to over $19.5 million at September 30, 2004 from $4.6 million at December 31, 2003. More importantly, Shareholders' Equity increased to over $8.7 million at the end of the third quarter, an increase from $2.9 million at December 31, 2003."

Susan Weisman, Chief Financial Officer for Coach states, "As an emerging growth company, our management understands the importance of maintaining a strong cash position to facilitate our growth. In furtherance of that objective, Coach may issue restricted common stock to eligible service providers, rather than pay in cash. For the nine month period ending September 30, 2004, Coach saved $630,000 of cash by issuing restricted common stock to various service providers, which resulted in a $630,000 expense relating to amortization of deferred compensation. We will continue to make the solid business decisions necessary to maintain a strong cash position and protect our shareholders and their investments."

We also determined that it was necessary to relocate a manufacturing facility from New York to Springfield, Missouri to eliminate redundant activities at our two manufacturing subsidiaries, and to take advantage of the lower cost structure and abundant labor market in Missouri. As such, our operating results reflect a one-time charge of $635,000 relating to that relocation, which we anticipate will save Coach between $450,000 to $600,000 annually. In addition, we spent $830,000 for Research and Development relating to our manufacturing subsidiaries, which we believe will improve our products and lead to improved Cost of Goods Sold.

"Our business model has proven attractive to the market place," according to O'Donnell. "In our model, profitability is not dependent on developing technologies, pending patents or government approvals. We believe that our success is dependent upon our ability to remain focused as an organization and deliver our existing products and services to our prospects and clients."

About Coach Industries Group, Inc.

Coach Industries Group, Inc. is a holding company, which through its subsidiaries, manufactures specialty vehicles for commercial fleet operators and offers an array of financial services and insurance products to commercial fleet operators and independent contractors in the courier industry.

Forward-Looking Statements

This news release contains certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission. There can be no assurance that our actual results will not differ materially from expectations.

Further information is available on the Company's website: http://www.cigi.cc.

Corporate Address:
Coach Industries Group, Inc.
12555 Orange Drive, Suite 261
Davie, FL 33330
954-862-1425