Speedemissions Reports Financial Results for Third Quarter Ended September 30, 2006

ATLANTA--Speedemissions, Inc. (OTC Bulletin Board: SPMI), a leading vehicle emissions testing/safety inspections company with testing stations in Atlanta, Houston and Salt Lake City, today announced results for the third quarter 2006. Speedemissions reported record revenue of $2,484,492 for the third quarter of 2006 compared to revenue of $2,084,061 in the third quarter of 2005. The Company also reported its third consecutive profitable quarter with net income for the quarter of $101,542 compared to a net loss attributable to common shareholders of ($646,328) in the third quarter of 2005.

The Company’s first nine months of the year, when measured against the same period in 2005, continues to show significant improvement in several areas. Revenue for the first nine months of 2006 was $7,286,789 vs $4,617,932 in 2005. This was a 58% increase. Net Income attributable to common shareholders for the same period was $208,726 vs a loss of ($1,561,550) in 2005, an improvement of $1,770,276.

Earnings per share (basic) improved in the third quarter to $0.03 a share vs ($0.25) loss in 2005. Earnings per share (basic) for the first nine months was $0.07 a share up from a loss of ($0.61) through September 30, 2005.

Earnings per share (diluted) was $0.01 in the third quarter vs a loss of ($0.25) in 2005. Earnings per share (diluted) for the first third months was $0.03 vs a loss of ($0.61) through September 30, 2005.

Rich Parlontieri, President/CEO of Speedemissions stated that, “The Company’s performance in 2006 of record revenues and earnings, coupled with its positive cash flow reflect the realization of benefits from its previous acquisitions in 2005 of Mr. Sticker & Just, Inc. Anchored by these acquisitions plus an increase in its existing Atlanta stores, the Company was able to achieve record numbers in both revenue and net income. The Company’s year-to-date G & A expenses are approximately $628,000 less than the comparable period in 2005.”

About Speedemissions Inc. http://www.speedemissions.com

Speedemissions, Inc., based in Atlanta, Georgia, plans to become the leading vehicle emissions (and safety inspection where required) company in the United States in areas where emissions testing is mandated by the Environmental Protection Agency (EPA). Since the emissions testing market is highly fragmented, Speedemissions expects to be the first company to create a national brand offering their customers quick and efficient vehicle emissions testing service. The focus of the company at the present time is the Atlanta, GA. Houston, TX. and Salt Lake City, UT. markets.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Speedemissions' products and services, its ability to succeed in growing revenue, the effect of new competitors in its market, integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.

Speedemissions, Inc. and Subsidiaries
Consolidated Balance Sheet
September 30, 2006
(Unaudited)
Assets
Current assets:
	Cash	$	410,943
	Other current assets		168,197
	Total current assets		579,140
Property and equipment, at cost less accumulated depreciation and amortization
			1,316,647
Goodwill			8,107,171
Other assets			52,726
	Total assets	$	10,055,684
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable	$	339,436
	Accrued liabilities		383,546
	Total current liabilities		722,982
Commitments and contingencies
Stockholders' equity:
	Series A convertible and cumulative preferred stock, $.001 par value, 5,000,000 shares authorized, 5,133 shares issued and outstanding
			5
	Series B convertible and cumulative preferred stock, $.001 par value, 3,000,000 shares authorized, 2,481,482 shares issued and outstanding
			2,481
	Common stock, $.001 par value, 250,000,000 shares authorized, 2,963,528 shares issued and outstanding
			2,964
	Additional paid-in capital		19,570,833
	Deferred compensation		(18,853)
	Accumulated deficit		(10,224,728)
	Total stockholders' equity		9,332,702
	Total liabilities and stockholders' equity	$	10,055,684
See accompanying notes to consolidated financial statements.

Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
	Three Months Ended					Nine Months Ended
	September 30					September 30
		2006			2005		2006			2005
Revenue	$	2,484,492		$	2,084,061	$	7,286,789		$	4,617,932
Costs and expenses:
Cost of emission certificates		601,186			615,745		1,842,776			1,436,546
Store operating expenses		1,426,122			1,136,280		4,155,151			2,710,808
General and administrative expenses		353,317			863,963		1,071,978			1,700,119
Income (loss) from operations		103,867			(531,927)		216,884			(1,229,541)
Interest expense		2,325			70,291		8,158			199,679
Net income (loss)	$	101,542		$	(602,218)	$	208,726		$	(1,429,220)
Less preferred dividends - undeclared		-			44,110		-			132,330
Net income (loss) attributable to common shareholders	$	101,542		$	(646,328)	$	208,726		$	(1,561,550)
Net income (loss) per share (basic)	$	0.03		$	(0.25)	$	0.07		$	(0.61)
Net income (loss) per share (diluted)	$	0.01		$	(0.25)	$	0.03		$	(0.61)
Weighted average shares outstanding, basic		2,903,744			2,635,530		2,852,140			2,543,715
Weighted average shares outstanding, diluted		7,468,742			2,635,530		7,417,138			2,543,715
See accompanying notes to consolidated financial statements.

Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
	Nine Months Ended September 30,
		2006		2005
Operating activities:
Net income (loss)	$	208,726	$	(1,429,220)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization		291,439		333,692
Loss (gain) on sale of assets		(9,993)		14,046
Share based compensation expenses		65,078		(19,949)
Stock issued for services		68,500		341,614
Changes in operating assets and liabilities, net of acquisitions:
Other current assets		(27,915)		(185,407)
Other assets		(11,525)		9,920
Accrued interest on long-term debt payable to related parties		3,881		163,948
Accounts payable and accrued liabilities		(172,226)		(307,599)
Net cash provided by (used in) operating activities		415,965		(1,078,955)
Cash flows from investing activities:
Acquisition of businesses		(100,000)		(5,012,486)
Proceeds from asset sales		14,854		34,000
Purchases of property and equipment		(153,684)		(35,955)
Cash acquired in acquisition		-		3,102
Net cash used in investing activities		(238,830)		(5,011,339)
Cash flows from financing activities:
Proceeds from issuance of convertible preferred stock to related party, net of expenses		-		6,101,400
Proceeds from promissory note payable to related party		-		350,000
Payments on promissory notes		-		(165,000)
Proceeds from convertible debenture		-		126,000
Payments on capitalized leases		(16,419)		(39,419)
Net cash provided by (used in) financing activities		(16,419)		6,372,981
Net increase in cash		160,716		282,687
Cash at beginning of period, December 31		250,227		16,431
Cash at end of period, September 30	$	410,943	$	299,118
Supplemental Information:
Cash paid during the period for interest	$	4,277	$	25,613
Non-cash Investing and Financing activities:
Equity securities issued in connection with the acquisitions	$	200,000	$	43,000
Equity securities issued in payment of notes payable	$	-	$	57,418
See accompanying notes to consolidated financial statements.