NowAuto, Inc. Completes Acquisition of Third Automobile Dealership

PHOENIX, Jan. 4 -- NowAuto, Inc. today announced the Company has closed the previously announced acquisition of its third dealership two weeks earlier than anticipated. This dealership has a proven track record of profitability and expects to generate over $3 million in sales in 2005 and be immediately accretive to earnings. This acquisition brings an important demographic market and adds significant vehicle inventory to NowAuto. The acquisition was an all cash transaction; therefore it was not dilutive to shareholders. The acquired dealership brings an established management team, great inventory, and a history of profitability.

The acquired dealership is located in Tucson, Arizona and has a history of profitability and strong auto sales. NowAuto, Inc. will immediately remodel the dealership but the business will remain open during the remodeling efforts. This acquisition included inventory of approximately 60 cars, trucks, and SUVs. This dealership is in an ideal location for the no credit check auto-financing concept. NowAuto is one of the only companies that do not do a credit check when financing vehicle purchases. To get approved, customers just need a valid driver's license, current utility bill, proof of income, and five personal references.

Scott Miller, CEO of NowAuto states, "We worked very hard to close this acquisition expeditiously. This is a terrific acquisition for NowAuto and our shareholders. I anticipate this acquisition adding over $3 million in sales in 2005 and increasing our cash flow and earnings per share. This dealership is profitable and our no credit check auto-financing program should work well in the Tucson market. We have numerous goals in 2005 for NowAuto and Navicom. Our immediate goals are increase shareholder value by increasing sales, profits, and become a fully reporting company. We are also immediately increasing marketing efforts of Navicom to increase market share in personal, business, and Law Enforcement markets."

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.