NowAuto to Acquire Automobile Dealership

Acquisition Will Be An All Cash Transaction and is Expected to Close by Mid-January

PHOENIX, Dec. 28 -- NowAuto, Inc. today announced that it has signed a letter of intent to acquire an established used car dealership located in the southwestern U.S. This will be the third NowAuto location and is expected to increase 2005 revenues by 30% or over $3,000,000 and be accretive to earnings per share. This acquisition brings an important demographic market and adds significant vehicle inventory to NowAuto. The acquisition will be an all cash transaction; therefore it will not be dilutive to shareholders. This acquisition is expected to close by mid-January.

Scott Miller, CEO of NowAuto states, "This is an opportunity to acquire a consistently profitable dealership within our target geographic and demographic markets. It also significantly increases our vehicle inventory. This is consistent with our plan to build the NowAuto dealership network through acquisition and new starts in high traffic locations. The fact that this particular dealership has established management, good inventory and a history of profitability makes the transaction extremely exciting for NowAuto."

Tino Valenzuela, COO states, "Because this is a material transaction we will delay filing our Form-10 so that we can incorporate the acquisition into the filing. Since this dealership has maintained complete accounting records we do not anticipate a prolonged delay. We continue to build toward an exciting 2005 and beyond by adhering to our business model of increasing shareholder value. Our immediate goal is to file the Form-10 to become a full reporting company, however, this opportunity makes NowAuto much stronger and we cannot allow it to pass."

Earlier this month, Scott Miller, CEO/President of NowAuto, Inc. raised guidance for 2005 to a net income in excess of $3,000,000 or .30 per share on $10,000,000 in revenues. The earlier estimates did not include this acquisition which once completed, should increase revenues and profits for 2005.

NowAuto has three unique and complementary sources of revenue broken down as follows:

     1.  Navicom, a subsidiary of NowAuto, has cutting-edge GPS technology
         that covers 98% of the United States, Mexico, and Canada.  The
         unique Navicom technology assists in vehicle location and control.
         Navicom allows the subscriber to access the vehicle location via
         the Internet and monitor location, speed and maintenance
         requirements.  The technology also has disabling capabilities,
         which stop a Navicom-equipped vehicle from starting.

     2.  NowAuto owns used-vehicle dealerships.  These dealerships are
         targeted at buyers with sub-prime credit to finance a vehicle with
         no credit check.  Using Navicom's technology the Company can shut
         down the car if payments are not received.  NowAuto sells its
         automobiles for an average of $7,000 with healthy profit margins.
         The new TV commercial can be viewed at http://www.nowauto.net/ by
   clicking the link at the top of the website.  NowAuto also has an
   online auto dealer division http://www.nowauto.com/.
   
   3.  NowAuto finances the vehicles it sells.  Automobiles will be
   financed to sub-prime credit borrowers at a rate of 29.99%.  By the
   end of 2005 NowAuto expects to have $10 million in loans receiving
   29.99% interest.  This represents annualized finance revenue of
   nearly $2,400,000 after down payment.  The Company expects its
   number of loans to more than double in 2006 through internal growth
   and acquisitions.
   
   Corporate Website - http://www.nowauto.net/
   Vehicle Dealer Website - http://www.nowauto.com/
   Spanish Version Dealer - http://www.pezgordo.com/
   Navicom GPS - http://www.nowgps.com/