---

Laforza Automobiles Signs Letter Of Intent

3 June 1998

Laforza Automobiles Signs Letter Of Intent With ILFAS Of Lithuania

    SAN DIEGO, June 3 -- Laforza Automobiles, Inc.
(OTC Bulletin Board LFZA) (LAI) announced today that they have signed a Letter
of Intent with ILFAS of Lithuania.  ILFAS is the manufacturer of the LADA
Automobile, better known as the "Russian Fiat."  The vehicle is marketed
across Europe and Canada and produces millions of dollars a year in revenue.
Under the terms of the final Agreement ILFAS will loan LAI $600,000 US.  Also
as part of the Agreement, LAI will enter into a joint venture in which they
will help ILFAS manufacture the Laforza SUV in Lithuania.  The Agreement will
allow LAI to finalize the purchase of all remaining Laforza inventory from the
1989-90 model year.  The Company has valued the assets purchased at over $1.8
million once all vehicles are assembled and sold.
    Laforza shall provide the technical expertise to set up manufacturing and
ILFAS will provide the facility, labor force and cost of production over the
next five (5) years.  Exact terms will be released upon the closing of this
Agreement.
    Laforza President & CEO, David Hops commented, "The joint venture with
ILFAS will allow us to begin increasing our production volume, while at the
same time penetrate a new market without affecting our U.S. distribution."
    Laforza Automobiles, Inc. is a publicly traded company (Symbol "LFZA")
that has the exclusive import and distribution rights to the Laforza SUV
throughout North America.  To find out more about this emerging growth
company, please visit their web site at http://www.laforza.com.
    This news release contains forms of forward-looking statements that are
based on the company's beliefs as well as assumptions made by information
currently available to the company.  Such statements are subject to certain
risks, uncertainties, and assumptions, which are identified in the company's
Rule 15c2-11 Information Statement.  Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results will vary materially from those anticipated, estimated or
projected and the variations may be material.

    Contact:  Jeff Chatfield, 888-282-6255.