PAAT Closes Master Licenses and Confirms Share Split

10 January 2001

PAAT Closes Master Licenses and Confirms Share Split

    EL CAJON, Calif.--Jan. 10, 2001--PanAmerican Automotive Corp. (OTCBB:PAAT) Wednesday announced that all contracts pertaining to the company's news release of Dec. 21, 2000 have now closed with World Transport Authority Inc. (WTAI).
    The contracts are for the execution of an option agreement between (PAAT) and (WTAI) for the master license for the balance of Central America excluding Panama for one million shares of (PAAT), the region known as the Caribbean (master license) for two million shares of (PAAT) and for the Master License for the country of Mexico for four million shares. All shares have now been issued to (WTAI).
    PanAmerican is additionally pleased to announce that its proposed five for one forward share split is proceeding as announced on Dec. 21, 2000. Shareholders of record Jan. 23, 2001 will be receiving four additional shares for each share held that date. The pay date for this transaction will be Jan. 25, 2001. PanAmerican's share capital has been adjusted to affect the split and the company is in compliance with regulatory policies related to the split. There will not be a symbol change or a CUSIP number change relating to the share split.
    Company President Daniel S. Peterson is quoted as saying, "With the closing of these transactions we now look forward to aggressively pursuing the marketing of the WorldStar vehicle and its unique micro manufacturing process throughout our licensed territories."

    This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such sections 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision.