AutoWorks International Limited Enters Automotive Insurance Industry Software Market with ''PartScan''

TORONTO--Feb. 1, 20064, 2006--AutoWorks International Limited today announced that Parts Direct (its wholly owned subsidiary) has fully designed, developed, and tested its PartScan software which is now available for 'live' installation and network systems integration with potential insurance company clients. The software has been extensively tested, to ensure efficient functionality at the automobile repair facility and wholesale parts distributor levels.

"Detailed discussions regarding Parts Directs' on-line parts purchasing program have been very successful," stated Brad Brock, president. "Live, in house product and services demonstrations have been requested by several automobile insurance companies and a provincially operated mutual automobile insurer in Canada which are keenly interest in implementing Parts Directs' software and services."

As a result, Parts Direct effectively becomes an on-line automated service bureau that allows insurance companies to benefit financially through the use of the PartScan technology and related services by purchasing the replacement parts from the company, at a significantly lower cost than otherwise available, through automotive repair facilities.

The replacement parts are ordered by PartScan directly from the wholesale parts distributor for the insurer and 'drop shipped' to the appropriate automobile repairer. PartScan's accounting system then invoices the automobile insurer directly for parts purchased and services provided.

This procedure contrasts significantly with current industry standard practices, where each individual automotive repairer purchases and invoices the insurance companies for the full retail value of these parts.

The size of the automobile repair industry in the United States is approximately $35.8 billion U.S. This represents the total industry sales by independent and franchised automobile repairers. In Canada, the automobile repair industry is estimated to be $2.8 billion CDN.

The automobile repair market encompasses the total costs incurred to repair damaged vehicles. Parts and labor are the two major components involved in vehicle repair, with parts comprising approximately 45% of the total cost of repairs. The aggregate value of the automobile replacement parts market in the United States is approximately $16 billion US. The Canadian market is estimated to be $1.26 billion CDN.

AutoWorks International Limited is an international software design, development and services provider focused primarily on generating internet based proprietary application software solutions for industries that may benefit from enhanced business to business communications, systems integration and coordination between their industry stakeholders. The software and services offerings may generate operating efficiencies and improved profitability to various industry participants.

Cautionary statement for purposes of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995: Any statements in this report that refer to the forecasted, estimated or anticipated future results of AutoWorks International Limited ("AutoWorks " or the "Company") are forward-looking and reflect the Company's current analysis of existing trends and information. Actual results may differ from current expectations based on a number of factors affecting AutoWorks businesses, including competitive conditions and changing market situations. Matters affecting the economy generally, including the state of economies worldwide, can affect AutoWorks results. Forward-looking statements represent the Company's judgment only as of the date of this report. Since actual results could differ materially, the reader is cautioned not to rely on these forward-looking statements. Moreover, AutoWorks disclaims any intent or obligation to update these forward-looking statements.