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AutoChina International Announces Significant Progress in its Expansion Strategy, Opens Stores in Five New Territories

SHIJIAZHUANG, China--AutoChina International Limited (“AutoChina�?? or the “Company�??) , China’s largest commercial vehicle sales, servicing, leasing, and support network, today announced that it has recently made significant progress in its expansion efforts through the opening of a store in each of the following locations:

  • Hefei, the capital of Anhui province;
  • Changsha, the capital of Hunan province;
  • Nanchang, the capital of Jiangxi province;
  • Chengdu, the capital of Sichuan province; and
  • The Chongqing directly-controlled municipality.

AutoChina typically receives permission to operate in a new province or province-level region, opens its first store in the capital city, and then expands into other cities throughout the province.

Including these five new stores, AutoChina has now entered a total of seven new provinces or province-level regions (Hubei, Liaoning, Anhui, Hunan, Jiangxi, Sichuan, and Chongqing) within the last three weeks. With the exception of Liaoning, all of these new provinces are located in Southern China. AutoChina already had a strong presence in Northern China with locations in the Hebei, Henan, Shandong, Shanxi, Shaanxi, provinces, Beijing and Tianjin direct-controlled municipalities, and Inner Mongolia. The Company now operates 190 store locations in 12 provinces or province-level regions and Inner Mongolia, and expects to operate at least 275 locations by the end of 2010.

Mr. Yong Hui Li, Chairman and CEO of AutoChina, stated, “We are pleased to report that our expansion efforts into Southern China are in full swing. We have also been pleased with the recent trends in our marketplace, as heavy-duty truck sales grew 22% in China in the first quarter of 2010, according to the China Commercial Vehicle Outlook. The report also estimated that China's heavy-duty truck sales will grow 27% in 2010, as there is a shift from construction towards freight hauling in the country. Our customers operate commercial vehicles for long-haul transportation of goods, such as agriculture, building materials, and natural resources, and tend to be located outside of the big cities in China. AutoChina’s offerings allow them to profitably operate their own businesses, and each new location strengthens our value proposition.�??

About AutoChina International Limited:

AutoChina International Limited is China’s largest commercial vehicle sales, servicing, leasing, and support network. AutoChina’s operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. The Company owns and operates 190 commercial vehicle financing centers across China; and primarily provides sales-type leasing and support services for local customers. 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 commercial vehicle 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.