AutoCorp, a Homeland Security Company, Releases CEO's Letter to Shareholders

FRISCO, Texas--Feb. 1, 20050, 2005--AutoCorp Equities, Inc. (OTCBB:ACOR) (to be renamed Homeland Security Network, Inc. on or about February 28, 2005, "HSN") today released a letter sent by Charles Norman, CEO, to all shareholders.

The complete text of the letter follows:

                          AutoCorp Equities, Inc.
                          2500 Legacy, Suite 226 Frisco, Texas 75034
                          Mail: P.O. Box 1678 Frisco, Texas 75034-1678
                               Phone (214) 618-6400 Fax (214) 618-6428
                                                      www.autocorp.net

   February 4, 2005

   Dear Shareholder,

   I am writing to inform you of a few of the many exciting changes
that are dramatically affecting AutoCorp Equities. First, I would like
to personally thank all of you for your patience over the years as we
attempted to build value for our shareholders and the Company. We have
been struggling, due to a highly competitive marketplace and the
shrinking availability of accessible capital for financing "non-prime"
auto loan programs. Recently, as a result of these uncontrollable
circumstances, the current management, led by Mr. Peter Ubaldi and me,
moved to gain control of the Company from its largest overseas
shareholder. We are now very pleased to announce that our efforts have
been successful, and we are ready to begin a new direction for the
Company.

   We recently announced that we have entered into acquisition
agreements with Rodwell Software Systems and ComTrak Solutions. These
companies, brought to AutoCorp by Peter and me, produce and market
revolutionary new GPS tracking devices and software that are reliable
and affordable. For the first time, consumers can inexpensively
monitor personal vehicles, and businesses can track private aircraft,
containers, tractors, trailers and trucks.

   To reflect the direction of its new course of business, AutoCorp
is in the process of changing its name to Homeland Security Network,
Inc (HSN). The newly re-structured Company will seek to capitalize on
the rapidly emerging, and largely under-served GPS tracking markets.
These markets, whose scope was dramatically accelerated by the
increased need for Homeland Security, are expected to create a
potential demand for in excess of 100 million units in the United
States, Canada and Mexico alone over the next decade, and an ongoing
replacement market of nearly twenty million units.

   HSN plans to lead the GPS tracking industry through the combined
assets of its newly acquired companies' propriety and patented
software and exclusive market distribution capabilities. The Company
is also completing negotiations with a major international electronics
manufacturer that will give it the ability to quickly and economically
expand its sales efforts to serve all of its targeted markets with
reliable world class manufacturing capabilities. We believe HSN will
capture the lead in the GPS market with its ability to provide the
lowest cost tracking hardware and the most cost-effective data
transmission fees in the industry. The company's GPS products will
incorporate state-of-the-art map tracking, trailing, and geo-fencing
alerts for designated parameter infringements, and the ability to
uniquely control all vehicle functions. Functions such as remotely
locking/unlocking, and starting a vehicle from its customer's
web-enabled mobile phones or personal computers, via the Company's
proprietary Internet website system software will soon be readily
available.

   Also, the Company has entered into new agreements with several New
York-based consultants that will provide the Company with capital,
investor relations services and help guide our new business plan. You
may be hearing from them periodically as they begin to help the
company instill investor confidence and create new common stock value
for its shareholders.

    Again, we thank you for your past support and look forward to a
much brighter and profitable future.

Sincerely,

Charles Norman
Chief Executive Officer

About Auto Corp Equities, Inc.

AutoCorp Equities, Inc. (ACOR), a publicly-traded holding company, has entered into acquisition agreements with Rodwell Software Systems and ComTrak Solutions. These companies, brought to AutoCorp by some of its major shareholders, produce and market revolutionary new GPS tracking devices and software. AutoCorp will change its name to Homeland Security Network, Inc. (HSN) on or about February 28th, 2005 to reflect the direction of its new course of business. The company will capitalize on rapidly-emerging, largely under-served, GPS tracking markets. These markets, whose scope was dramatically accelerated by the increased need for Homeland Security, have a potential demand in excess of 100 million units-plus in the United States, Canada and Mexico over the next decade. HSN plans to lead the GPS tracking industry through the combined assets of its newly acquired companies' propriety software and market distribution capabilities. The re-structured company is also completing negotiations with a major international electronics manufacturer that will give it the ability to quickly and economically expand its sales efforts to all of its targeted markets. HSN expects to capture a dominant share of the GPS market with its ability to provide, in large quantities, the lowest cost tracking hardware, and to offer the most cost-effective data transmission fees (wireless airtime consumer costs) in the industry. Airtime costs, which largely inhibit the current GPS market's product sales and deployments, will be nearly 2000% lower for HSN than those of its nearest competitor for comparable data transmissions. The company's GPS products will incorporate state-of-the-art map tracking and trailing, geo-fencing alerts for designated parameter infringements, and the ability to uniquely control all vehicle functions from its customer's web-enabled mobile phones or personal computers, via the company's proprietary Internet website system software.

Interviews with the Company's CEO are available at http://www.wallstreetreporter.com/profiles/AutoCorpEquitiesInc.html http://www.ceocast.com/company.cfm?cid=2247

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties. This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," "promise," "seeking to," "negotiating to" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

Mailing List

Interested investors are invited to contact MarketConnexxions at info@marketconnexxions.com to be added to the mailing list for HSN.