Northeast Auto Acceptance Corp. Signs Letter of Intent to Acquire Competitor

MERRICK, N.Y.--Feb. 8, 2005--Northeast Auto Acceptance Corp. (OTC: NAAC) announced today that the company has just signed a letter of intent to acquire Alan's Auto's, a competitor and privately held wholesale auto dealer based on Long Island, New York, which had revenues in 20004 in excess of $15 million.

Bill Solko, Northeast's CEO stated, "We are very happy to be on the verge of making our first acquisition within the industry. Alan's Auto's is one of the largest companies of it's kind in the Long Island area, a hotbed of used vehicle activity. This acquisition is going to give our company an even greater presence in the New Year metro area where we are based, as well as give us the opportunity to better meet the inventory needs of our growing customer base. We expect to close on this acquisition sometime within the next 60 to 90 days".

About Northeast Auto Acceptance Corp:

Northeast Auto Acceptance Corp. focuses on the wholesale segment of the auto industry. The company specializes in the marketing of vehicles on a national basis, which allows them to take advantage of seasonal and geographical pricing disparities. Northeast, a leader in this highly fragmented industry, has sold more than $250 million dollars worth of vehicles during its 10 years of operation. The company has offices in the New York Metropolitan area.

STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements other than historical facts contained in this press release are "forward-looking statements". Such statements are based on management's beliefs and assumptions, and on information currently available, and involve uncertainties and other factors which may cause our actual, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward- looking statements. Factors include, among others, our ability to finance our operations and the ability to obtain such financing; the successful completion of any prior and future acquisitions; any uncertainties relating to the integration of acquired businesses and operations; any disputes with, and claims asserted by, our creditors and other third parties; uncertainties relating to business and economic conditions in markets in which we operate; uncertainties relating to customer plans and commitments; the timely development and market acceptance of our products; and the highly competitive industry in which we operate. We undertake no obligation to update any forward-looking statements in this press release.