SIMCO Reports on Amalgamation with Affiliate and Debt Restructuring

DETROIT--July 27, 2006--SIMCO America Inc. (Pink Sheets: SCMA) reported on the status of its amalgamation and alignment which has been the main interest of the company through the first two quarters of 2006.

SIMCO's subsidiary Shinil of Korea entered into a restructuring process whereby they will amalgamate their affiliate automotive parts company Hyun Yang. The amalgamation is being undertaken to restructure debt and streamline the business operations for growth and improved profitability. Audit results for these companies, performed respectively under Korea GAAP, are expected in August.

Sales volume for SIMCO has increased through the first half of 2006 consistent with historical growth from inception and improving further as their export business matures. The growing export business is expected to help SIMCO to record revenue growth as the company expands globally through widening export channels and is an integral part of the amalgamation and restructuring.

Through the restructuring, SIMCO America will have both Shinil Co. Ltd. and Hyun Yang Co. Ltd. as its core assets and business operations, and ultimately will operate as a single business operation and as the basis to acquire other assets for further expansion.

This amalgamation, debt consolidation and restructuring should result in 20% to 30% annual debt load reduction and improve earnings. The result should drastically improve finance ability with better terms and conditions, and SIMCO's ability to list on a major U.S. exchange.

The master plan for this restructuring is to be completed by Sept. 20, 2006, with a final decision of the plan's conditions to be determined before the end of November.

SIMCO America Inc. has succeeded for 10 years to design and manufacture automotive technology that is utilized throughout the global vehicle and machine parts and manufacturing industry. They were originally the FCR Automotive Group, and now as SIMCO America Inc. they are seeking to foster new territory and expand sales of auto and machine parts to the United States. For more information on SCMA, go to www.pinksheets.com, or for a corporate report from Princeton Research visit www.princetonresearch.com.

Forward-Looking Statements

Certain information and statements made in this release are intended to constitute "forward-looking statements" within the meaning of the federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the company to financially or materially differ from any future results, performance, or achievements expressed or implied by the content of such forward-looking statements.