Green Parts International Inc. Announces 3rd Quarter Update and Management Discussion of Operations

ATLANTA--Oct. 1, 20057, 2005--Green Parts International, Inc. (OTC: GNPT.PK) announced today its 3rd quarter update to shareholders. The update provides Management's discussion of operations and analysis of the milestones reported.

Introduction

Green Parts supports an integrated auto salvage, repair parts and scrap metals business from its headquarters in Atlanta, GA. In the next three years, Green Parts has targeted the acquisition of 32 salvage yards in the USA and worldwide with a goal of rolling up $50,000,000 in gross revenue per annum. Each roll-up will be independently financed from private investors who will lease the properties to Green Parts under the terms of a lease-operating agreement. In the same period of time, the major competition to Green Parts in the USA was successful in such a roll-up program. The strength of Green Parts is its ability to attract capital from international sources based upon the networking of its founder Asif Balagam. Mr. Balagam, 30, was born in Fort Lauderdale, FL. Mr. Balagam grew up in Atlanta, GA where he resides with his wife and family.

3rd Quarter 2005 Results and Milestones

-- 96% Increase in Revenue:

In the 3rd Quarter 2005, we experienced a 96% increase in revenue to $306,700.00 compared to $156,300.00 for the 3rd Quarter 2004. This increase of revenue reflects strong demand for salvage and the quarter to quarter improvement in the quality of our inventory. We believe that continued growth will remain strong with revenues continuing to grow as we expand our capital base and ability to finance the purchase of new salvage inventory. There has not been a significant increase in operating costs and the need to add additional personnel. Since we specialize in securing salvage inventory that is sold in a short cycle of 45-60 days or less, we will be able to leverage cash flow to achieve superior returns on investment.

-- 14% Increase in Parts Business:

Parts business grew at a rate of 14% with gross margins increasing by 10% year over year. This reflects both a upward trend in the entire salvage industry based upon increased demand from customers, but it also demonstrates our ability to execute on our business model.

-- Projected Revenues Increased 30%:

Revenues were 30% higher than what we projected at the beginning of the year. We have adjusted our salvage parts buying to keep up with continued growth.

-- Effect of Higher Energy Costs:

Profits and revenues were hindered by the increasing cost of energy; otherwise, we could have achieved higher revenues and profits. However, we believe that higher energy costs will increase the demand for salvage as the cost of producing new goods using raw materials will be higher overall. All of our competitors face the same challenge with respect to energy costs. Since we source the majority of our salvage parts within the Atlanta Metroplex we do not have to ship parts from out of state. We will continue to source locally, but as sales increase we will have to take into consideration higher energy costs of shipment to our fulfillment centers.

-- Future Outlook:

We anticipate revenues from our recently announced international scrap metal supply contract with a dealer in Bangladesh to materialize in the upcoming quarter. We believe that our profit margins will be higher than originally forecasted which will make up for the delays while we finalize the terms of international letters of credit. A second international scrap metal contract is in final negotiations with a principal dealer in India.

We believe that international scrap metal business will rapidly expand requiring us to increase our revenue projections for 2006.

-- GEOS Update:

The completion of GEOS (our industry leading proprietary software fulfillment package) is expected to be at the end of October 2005. After months of beta testing, we expect to roll-out the first version of GEOS in the first quarter of 2006. With various initiatives in place for the upcoming year, organic growth, our increased export business, and the completion of targeted acquisitions, we believe that Green Parts will continue to grow at records rate. E-commerce will play a big roll in our efficiency and sales.

Conclusion

The only limit to our explosive growth is access to sufficient capital to pay for expansion. While growth in the USA is a priority the opportunities for international growth is requiring us to fast track negotiations with potential acquisition partners in Dubai and other parts of the world. We believe that we lead the competition in establishing international agencies giving us a strategic advantage in securing long term contracts for auto salvage and scrap metals.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Green Parts International, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors.