Autoworks' Parts Direct Identifies Second Market Sector For Software

TORONTO--June 22, 2006--Autoworks International Limited (FWB:A6Q) today announced that management of its wholly owned subsidiary Parts Direct is marketing its proprietary software "Partscan" to a second market sector which includes self insured automotive fleets, car rental organizations and corporate entities.

"Discussions have begun with self insured entities to implement the Parts Directs' on-line parts purchasing program," stated Brad Brock, president. "This multi-million dollar repair market represents large private fleets, automobile rental companies and other corporations which finance their corporate automobile repair claims internally." Discussions continue with the Canadian and U.S. based automobile insurance companies.

Corporations which by policy insure their vehicles, do so due to its cost effectiveness. Management of Parts Direct believes it can assist self insurers by reducing their average cost per repair claim through the use of its aftermarket parts purchasing program and related services.

Parts Direct is an on-line automated automobile replacement parts purchasing platform that allows insurance companies and self insurers 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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