Autoworks International Limited Enters Agreement with New Supplier of Aftermarket Parts

TORONTO--May 17, 2006--Autoworks International Limited (FWB:A6Q) today announced that management of its wholly owned subsidiary Parts Direct has entered into an agreement with a new supplier of automobile aftermarket parts.

In order to best serve the insurance companies Parts Direct has engaged a new company to be its supplier of aftermarket parts " We are very excited about this relationship and feel that it will ensure that we are able to provide the quality service that the insurance companies are used to " stated Mike Cassidy President

Parts Direct is an on-line automated automobile replacement parts purchasing platform that allows insurance companies to purchase parts from the company at discounted prices than would otherwise be available from parts retailers.

The replacement parts purchased by insurers are procured by Parts Direct from wholesale parts distributors and 'drop shipped' to the appropriate automobile repairer. This procedure contrasts significantly with current industry standard practices, where each individual automotive repairer purchases and invoices the insurance companies for the retail value of these parts.

According to Collision Parts Replacement Market Industry Overview, dated June 2005, the aggregate value of the automobile replacement parts market in the United States is approximately $16 billion. The aggregate value of the automobile repair industry in the United States is approximately $35.8 billion including independent and franchised automobile repairers

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.

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.

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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.