Finalization of Master License Agreement for Nation of Mexico

4 May 1999

Composite Automobile Research Ltd., Announces Finalization of Master License Agreement for Nation of Mexico

    EL CAJON, Calif.--May 4, 1999--Composite Automobile Research Ltd.,(OTCBB:CARHF) and its wholly owned subsidiary, World Transport Authority Inc., announces the signing of a Letter of Intent for the WTA Master License Agreement for the nation of Mexico with a highly qualified Mexican businessman, Arturo Novelo.
    Novelo's business background includes experience in banking, hotel ownership and franchise operations. The Master License Agreement for Mexico is valued at US $4,000,000 and includes the full line of the WorldStar line of utility vehicles.
    The negotiations for the Master License have been on going for the last four months. The agreement includes a Manufacturing & Distribution License for the manufacture of three-vehicles-per-day with a starting date of July 15, 1999. The Master License holder for Mexico has conducted studies and consulted with local and Federal Mexican authorities to determine to projected size of the national market for utility vehicles.
    The study concludes the market has a need for a minimum of 64,800 net new utility vehicles per year and does not include the replacement of existing vehicles in the category. To meet this production demand, the Mexican Master License holder forecasts 200 basic one vehicle-per-day factories located strategically throughout the nation.
    The first factory designated for Ensenada, Baja California, Mexico, will be finished for shipment by June 4, 1999. This basic factory will build the entire WorldStar line of utility vehicles at the rate of one vehicle-per-day. The WorldStar factory in base format sells for $372,000 and is expandable to three vehicles-per-day in easy-to-install modules.
    World Transport Authority Inc. has accepted a final settlement offer from BAT Inc. of Chula Vista, Calif. (Battery Automated Transport Inc.). The settlement includes royalty payments to WTA as well as exclusion of BAT from worldwide markets. Additional information on the Web sites for both companies.
    As Henry Ford's Model T helped America grow, so will the WorldStar assist the emerging world. World Transport Authority Inc., is the only company serving the emerging world's local transportation needs. The satisfaction of the local needs are accomplished by selling and installing vehicle manufacturing facilities in the nation where the vehicles will be sold and serviced.
    Additional information: WTA Investor Relations, 619/444-7254, fax 619/444-9026 or visit the Web site www.WTAWorldstar.com. Email: www.WTA@adnc.com.

    "Safe Harbor" Statement Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in the development are forward looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any and all of these forward-looking statements may not occur.