Autoworks International Limited Signs Letter of Intent Which May Increase Revenues by 125%

TORONTO--May 28, 2006--Autoworks International Limited (FWB:A6Q) today announced that it has signed a letter of intent to acquire 100% of the business combinations, assets, and revenues of Willowdale Automotive Centre (WAC). " Willowdale Automotive Centre is the first in a series of contemplated automotive mergers consistent with our growth by acquisition strategy developed as part of our business model, as opportunities, time and available capital will permit", stated Brad Brock President. "The acquisition of the business combinations, assets and revenues are synergistic with our current businesses and will strengthen our financial position substantially. Post merger, aggregate revenues are anticipated to be in excess of CDN$4.5 million annually with earnings expected to approach 15% to 20% of revenues."

WAC is a full service automobile body parts, inventory and storage facility with annual revenues averaging approximately CDN$2.3 million and assets valued at approximately CDN$500,000. The acquisition is subject to the standard due diligence and review period necessary for a transaction of this nature and magnitude; terms of the letter of intent were not disclosed.

Management expects that in addition to increasing its revenue and asset base this acquisition will assist its wholly owned subsidiary Parts Direct in the development and implementation of its current and future software products and services through its Internet automobile parts purchasing platform www.ipartsdirect.com. Also, management of Parts Direct is continuing its discussions with insurance companies regarding the implementation of a test pilot program for its "Part Scan" software and related services.

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.