1-800-AutoTow, Inc. Files Form 10-SB with SEC to Become a Reporting Company.

BOYNTON BEACH, Fla.--(BUSINESS WIRE)--Aug. 19, 1999--

1-800-AutoTow, Inc. (OTC:AUTWE), www.1800autotow.com, a company using technological innovations in its consolidation of America's vehicle towing industry into a national brand, announced today that it has filed a Form 10-SB registration statement with the Securities and Exchange Commission (SEC). The filing was made to comply with recently enacted rules of the National Association of Securities Dealers, Inc. (NASD), which requires among other things, the Company to become registered with the SEC under the Securities Exchange Act of 1934 in order for the Company to remain eligible for listing on the Over-the-Counter Bulletin Board.

The 10-SB filing is subject to SEC review. At such time the Form 10 is approved, AUTWE will be in compliance with the amended NASD OTC Eligibility Rules 6530 and 6540. The 10-SB filing establishes a public file containing material, financial and business information on the company for use by investors, and also creates an obligation on the part of the company to keep such public information current by filing periodic reports on Forms 10-Q (Quarterly Report) and 10-K (Annual Report), and on current-event Form 8-K, as applicable.

Recently, 1-800-AutoTow(tm) retained the international accounting firm, Grant Thornton LLC, to assist in compliance and to become the company's auditors. "We're very excited about working with Grant Thornton as our progress continues, not only with compliance but in building a national towing company," said Joel B. Nagelmann, President and CEO of AUTWE.

About the Company:

1-800-AutoTow(tm), which began publicity trading on June 25, 1998, is acquiring vehicle towing companies in metropolitan areas across the country and plans to consolidate those operations into a single branded identity. The highly fragmented vehicle towing industry is believed to consist of more than 36,000 towing companies nationwide, representing $12 billion to $15 billion in annual revenues.

1-800-AutoTow's most recent acquisitions, a total of eight towing companies in Florida and Texas, were closed earlier this month upon completion of the company receiving $5 million in senior debt from FINOVA Capital Corporation and $2.7 million in equity through an affiliate of GMA Partners, Inc. FINOVA is one of the nation's leading financial services companies focused on middle market businesses. GMA is a middle market investment banking and merchant banking firm focused on transactions from $10 million to $100 million. When combined with current operations, 1-800-AutoTow(tm) represents approximately $11 million in annualized revenue.

The transition to a national service for 1-800-AutoTow(tm) includes professional driver training, fleet standardization, automated 24-hour dispatching using GPS (global positioning satellite) technology, the introduction of a dedicated sales force for local and national marketing, and benefits packages designed to attract and retain quality employees.

1-800-AutoTow(tm), Inc. was founded in 1997 and is based in Boynton Beach, Fla. The company's management team consists of a diverse and experienced group of entrepreneurs, senior operating executives and towing veterans. More information is available on the Internet at www.1800autotow.com.

The statements contained herein which are not historical information may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement.