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AutoChina International Completes Redemption of All Warrants

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 redemption of its warrants. The redemption date for the warrants was January 8, 2010. Concurrent with completion of the warrant redemption, the Company’s publicly traded warrants (AUTCW) and units (AUTCU) ceased trading.

Immediately prior to the announcement of the warrant redemption there were approximately 4.2 million warrants issued and outstanding, including 1.43 million warrants issued to insiders prior to the Company’s initial public offering. Each warrant entitled the holder to purchase from AutoChina one ordinary share of the Company at an exercise price of $5.00 per share. Prior to the redemption date, a total of 4,080,690 warrants were exercised, equal to approximately 97.8% of all warrants subject to redemption. The remaining 91,418 warrants were redeemed and the holders of those warrants were paid the sum of $0.01 per warrant. As of January 21, 2010, there were 15,076,410 ordinary shares of AutoChina issued and outstanding.

AutoChina received total proceeds from all warrant exercises of approximately $20.4 million. The Company intends to use the proceeds from the warrant redemption to continue the expansion of its commercial vehicle sales and leasing business.

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.

Safe Harbor Statement:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:

  • Continued compliance with government regulations;
  • Changing legislation or regulatory environments;
  • Requirements or changes affecting the businesses in which the Company is engaged;
  • Industry trends, including factors affecting supply and demand;
  • Labor and personnel relations;
  • Credit risks affecting the Company's revenue and profitability;
  • Changes in the automobile industry;
  • The Company’s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel;
  • Changing interpretations of generally accepted accounting principles;
  • General economic conditions; and
  • Other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission.

The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.