Auto Network Secures Credit Facility
6 May 1998
Auto Network Secures Credit Facility$500,000 Line to be Used for National Expansion SCOTTSDALE, Ariz., May 6 -- Auto Network USA (OTC Bulletin Board: ANWK), the fastest-growing publicly-held wholesaler of used luxury automobiles in the country, today announced it had secured a $500,000 credit facility from Scottsdale, Arizona-based First International Bank & Trust. Auto Network will use the funds to finance its national expansion by acquiring and consolidating independent automobile wholesaling companies in key geographic areas, providing Auto Network with access to a large and growing volume of high-quality, late-model luxury automobiles. By creating a national presence, Auto Network expects to take advantage of geographic discrepancies in the values of cars, helping improve overall operating margins. The credit facility represents Auto Network's first transaction with a traditional lending source and comes on the heels of Auto Network's best- ever operating month. During the month of April, Auto Network recorded in excess of $6 million in sales and a record volume of cars sold. "This revolving facility will enable Auto Network to expand our unique auto wholesaling system operating in Arizona and replicate it in key geographic regions of the country," said Mike Stuart, President and CEO of Auto Network. "First International Bank & Trust recognizes the potential of Auto Network's growth opportunities and we look forward to seizing those opportunities to produce meaningful revenue growth and improved shareholder value." Auto Network USA is a wholesaler of used luxury automobiles, providing new car dealers with an alternative to the auto auctions by purchasing and re- selling trade-in vehicles. The Company is capitalizing on the billion-dollar wholesale market by focusing operations in strategic segments of the country. The Company has been profitable since it began operations. Statements in this press release regarding the expansion of the Company's operations are forward-looking statements. Words such as "expects," "intends," "believes," "anticipates," "may," and "likely" also identify forward-looking statements. Actual results could differ materially from those anticipated for a number of reasons, including, among others, increased competition, a downturn in the market for hardware and/or software products, increases in interest rates, and other unanticipated factors. Risk factors, cautionary statements, and other conditions which could cause actual results to differ are contained in the Company's filings with the Securities and Exchange Commission, including the Company's Annual report on Form 10-KSB. SOURCE Auto Network USA