AutoChina International Closes Sale of Chinese Consumer Auto Dealership Business for Approximately $68.8 Million

SHIJIAZHUANG, Heibei Province, China--AutoChina International Limited (“AutoChina” or the “Company”) , a leading one-stop commercial vehicle sales and leasing company in China offering its customers affordable lease-to-own options, today announced that it has completed the previously announced sale of its consumer auto dealership business.

The consumer auto dealership business was sold to Xinjiang Guanghui Industry Investment (Group) Co. (“Xinjiang”) for a cash payment of approximately $68.8 million (RMB470 million). The Company expects to utilize the net proceeds from the sale to expand AutoChina’s commercial vehicle sales and financing business, which is already among the leaders in the industry in China. The Company expects to report a pre-tax gain of approximately $11.3 million (approximately RMB77 million) from this transaction in the current fourth quarter.

Xinjiang was established in 1989, and includes among its investments the China Grand Automotive Group (“CGA”) joint venture with TPG Newbridge. CGA operates a network of over 100 auto dealerships in China.

AutoChina’s Chairman and CEO, Mr. Yong Hui Li, noted, “We are pleased to have closed this transaction, which will enables us to devote all of our resources and time toward maximizing the value of our commercial vehicle sales and financing business. In addition, we value our strong relationship with Xinjiang, and hope to potentially work together on other projects in the future.”

About AutoChina International Limited:

AutoChina International Limited is a leading one-stop commercial auto financing and sales company in China. AutoChina’s operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. The Company’s website is http://www.autochinaintl.com.