Carroll Shelby International Announces 2007 Results

LOS ANGELES--Carroll Shelby International, Inc., (Pink Sheets: CSBI) announced today the results of its 2007 fiscal year. The audited results show that the company earned $6,649,153 on revenues of $72,164,939, or $.20 per fully diluted share or $.45 per basic share, for the year ended December 31, 2007.

“We’re pleased to release the results of our 2007 fiscal year to our shareholders and are underway with an audit of our 2008 and 2009 results.”

Carroll Shelby, founder of Carroll Shelby International, said, “We’re pleased to release the results of our 2007 fiscal year to our shareholders and are underway with an audit of our 2008 and 2009 results.�??

Full year 2007 highlights include the following:

• Sales increased over 600% from just over $12,000,000 to over $72,000,000 for the same twelve month period ending 2006 and 2007 respectively

• Cash provided by operating activities for the 12 months ended December 31, 2007, dramatically swung positive to $14,758,700 compared to ($1,281,000) in cash used in operating activities during the same period in 2006, primarily driven by both increases in sales volume and production capacity at Shelby American’s Las Vegas Manufacturing Facility and 62% growth at Shelby’s Licensing division in Gardena, California
• Gross margins totaled over $29,000,000, exceeding 40% in 2007-the first time ever since starting Shelby American in 2003
• The company’s Shelby Automobiles division (now Shelby American) introduced a Hertz Shelby convertible and a Shelby GT retail program with Ford Motor Company, producing over 7,200 new Shelby automobiles in fiscal year ending 2007
• The Company launched a new parts joint venture with Scott Drake Enterprises and has since decided to run this business solely from its’ Las Vegas manufacturing facility

“This is a great step toward fiscal transparency to our Shareholders,�?? explained Keith Belair, Shelby CFO. “During the early days of Sarbanes-Oxley, companies found that the cost to comply with the new rules was about ten times more than it was previously. Small market cap companies were required to spend more, as a percentage of free cash flow or net income as were the giants such as GM or IBM, on compliance. The Board of Director’s of Shelby made a strategic decision to spend profits on product and brand development, while maintaining the financial health of the company instead of filing and compliance costs.�??

Like thousands of other small market cap companies, this strategic decision was made even though it caused CSI to be de-listed. The company moved to the Pink Quote, an electronic quotation system operated by Pink OTC Markets that displays quotes from broker-dealers for over-the-counter securities in 2005.

“Since then, we’ve maintained the same fiscal discipline,�?? added Belair. “Shareholders requested our results and, though not required, we chose to audit our financials to better provide them with an accurate snapshot of the company’s financial health. To do so, we were obligated to first start where we left off at the end of 2006. We’re proceeding on our 2008 and 2009 fiscal years and plan to release those results soon.�??

The continued improvements in gross margins and operating efficiencies in 2007 resulted in the company reporting stable growth in profitability. Income before provisions for income taxes soared to $8,619,591, or nearly 12% of total revenues for the full fiscal year ending 2007 compared to a loss of just over $3,000,000 for the same period ending December 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA, a non-GAAP measure) grew to $9,154,428 for the fiscal year ending December 31, 2007.

CSI’s cash balance at the end of the year was $14,023,238, up $12,660,590 from $1,362,648 at the end of 2006.

The results were audited over the past several months by J.H. Cohn LLP. The accounting firm has also been engaged to complete audits of the 2008 and 2009 fiscal years. These audited financials will be posted on Carroll Shelby International’s website soon after this release. A dedicated page for shareholders is currently in process.

“We feel that the health of the company is driven by Shelby brand presence, exciting Shelby products and financial health,�?? said Shelby president John Luft. “Our decision to spend profits on those areas demonstrates CSI’s commitment to the future of the Shelby brand and shareholder value.�??

About Shelby American, Inc.

Shelby American manufactures high performance vehicles under the lineage of automotive manufacturing icon and entrepreneur Carroll Shelby. The company is involved in vehicle manufacturing, design and engineering projects under a license agreement with Carroll Shelby Licensing Inc. For more information, call (702) 942-7325 or visit www.shelbyamerican.com. Shelby American is a subsidiary of Carroll Shelby International, Inc. Carroll Shelby founded his licensing company in 1988, and Carroll Shelby Licensing, Inc. is the exclusive holder of Shelby’s trademarks and vehicle design rights for all automotive products, which include some of the world’s most famous muscle cars and high-performance vehicles, including the car that brought home to the U.S. its first and only FIA World Manufacturers Championship in 1965, the famous Shelby Cobra Daytona Coupe. It also licenses Shelby-branded apparel, accessories and collectibles for all things automotive. For additional information, call (310) 914-1843, fax (310) 538-8189, write Carroll Shelby Licensing, Inc., 19021 S Figueroa St., Gardena, CA, 90248, or visit www.carrollshelby.com, www.shelbylicensing.com or www.carrollshelbyinternational.com.

Safe Harbor Statement

The statements contained in this press release that are not purely historical, including statements regarding the Company’s expectations, hopes, beliefs, intentions, or strategies regarding the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from those expected because of various known and unknown risks and uncertainties, including, but not limited to, the continuing effects of the U.S. recession and global credit environment, other changes in general economic and industry conditions, the award or loss of significant client assignments, timing of contracts, recruiting and new business solicitation efforts, currency fluctuations, and other factors affecting the financial health of our clients. These and other risks are described in the Company’s most recent annual report on Form 10-K and subsequent reports filed with or furnished to the U.S. Securities and Exchange Commission (SEC). The forward-looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements, and the results announced for 2007 should not be interpreted to mean that results to be announced for 2008 or 2009 were the same, better or worse. As a result of its December 2004 decision to de-register its stock with the SEC through the filing of a Form 15, the Company has not filed annual or quarterly reports with the SEC since that time.