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Auto Network USA Acquires Pinnacle Dealer Services, Inc

31 August 1998

Auto Network USA Acquires Pinnacle Dealer Services, Inc.; Establishes Credit Lines for Dealers


    SCOTTSDALE, Ariz.--Aug 31, 1998, Auto Network USA, (AUTONET) (OTCBB:ANWK) announced today the acquisition of Pinnacle Dealer Services, Inc. (PDI)
    In addition, AUTONET, through PDI, has entered into a financing agreement with a third party source, where by credit lines (flooring lines) will be made available to dealers for automobile purchases from AUTONET. This will provide a unique financing alternative that will supplement or replace the dealers' existing financing programs for vehicles purchased from AUTONET. The specific target market for this financing is selective independent dealers.
    According to Mr. Mike Stuart, President of Auto Network USA, "We are very proud of this new sales tool for AUTONET. To the best of our knowledge, no other auto wholesale operation in the United States has a similar program and we expect great things from it."
    Furthermore, PDI intends to develop a strategic alliance with a nationally recognized purchaser of retail automobile installment contracts. This service will also be made available to AUTONET's dealer network.
    Auto Network USA (AUTONET) is the fastest growing, publicly-held wholesaler of used late model and luxury automobiles in the country. The Company is capitalizing on the billion-dollar wholesale market by focusing operations in strategic segments of the country. AUTONET's strategy is to gain market share in key urban areas by acquiring and consolidating the independent automobile wholesaling companies. This strategy will provide the Company with access to a large and growing volume of high-quality late model and luxury automobiles. It will also allow AUTONET to take advantage of geographical disparities in the value of cars.
    Financial Statements in this press release (if any) other than historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.