CHAMCO AUTO Announces Special Dividend for Joint Venture Dealer Investors

PARSIPPANY, N.J., Dec. 6, 2006 -- CHAMCO AUTO has announced it has awarded its joint venture dealer investors a special dividend. Those dealers who had invested with CHAMCO AUTO as of November 6, 2006 and received management units in ZXNA Regional Partnership #1, LLC will now also receive a special dividend of a membership unit (without any incremental investment necessary) in the newly formed second partnership, ZXAUTO Changchun Partnership #2, LLC. Bill Pollack, Chairman of CHAMCO AUTO, made the announcement.

Previously, CHAMCO AUTO's partner in China, Hebei Zhongxing Automobile, Ltd. (ZXAUTO China), had announced that their parent holding company and the Changchun government had entered into a joint venture to produce and export sedans and crossovers. The Changchun government had donated 2 MM sq. meters of land for this plant, secured a Central Government loan of $1 Billion Yuan (U.S. $127 MM) for its construction, and obtained Central Government approval to produce and export its sedans. CHAMCO AUTO, through its contract with ZXAUTO China, will be receiving the output of this joint venture for sale in North America. Production start-up is planned for late 2008.

ZXNA Regional Partnership #1, LLC is a joint venture formed by CHAMCO AUTO and its joint venture dealer investors to import, distribute and market SUVs and pick-ups manufactured by ZXAUTO China into North America. These dealer investors will receive preferential treatment for exclusive selling territories once dealerships can be awarded.

To facilitate the importation of sedans and crossovers into North America from the newly formed joint venture, ZXAUTO Changchun Partnership #2, LLC was formed. Each ZXAUTO Changchun Partnership membership unit has a current value of $150,000 and represents an annualized internal rate of return of 60% on each investor's original investment.

"Without the timely support and farsightedness of our initial investors, an opportunity such as this would not have been possible. It was appropriate to reward their early confidence in CHAMCO AUTO's efforts with this special dividend, without requiring any incremental investment. And as CHAMCO AUTO continues to expand our line of high value, quality vehicles from China, we plan to continue to reward our joint venture dealer investors," said Mr. Pollack.

CHAMCO AUTO, based in Parsippany, New Jersey, is a management holding company that expects to become the first company to import Chinese-made vehicles into the United States. Further information about ZXAUTO China can be found at http://www.zxauto.com.cn/ . More information on CHAMCO AUTO can be found at http://www.chamcoauto.com/ .