CARH Factory Capacity Increases.

Business Editors/Auto Writers

EL CAJON, Calif.--(BUSINESS WIRE)--May 16, 2000

Composite Automobile Research Ltd. (OTCBB:CARH) (POH:Frankfurt), through its wholly owned subsidiary World Transport Authority (WTA) is pleased to announce that it has entered into a Memorandum of Understanding (MOU) with C-to-C Corporate Resources Inc. (CCCR) of Montreal, Quebec Canada.

Pursuant to the MOU, CCCR and WTA have agreed to form a joint venture for the purpose of building factories expressly for the production of the WorldStar(R) vehicle, to be shipped worldwide. C-to-C Corporate Resources Inc. is proposing to build two factories, one on the east coast of Canada to build and ship factories to sectors such as Western Europe, Africa and the Caribbean market place. The second factory will be built on the west coast of Canada and will primarily build and ship factories for the rapidly developing Asian market place, i.e., China.

[pilcrow (paragraph sign)] President Michael MacInnis declared, "CCCR, by being a fully Canadian company, feels that it may perhaps qualify for grants offered by the Canadian Export Development Agency, whereby under certain circumstances, financing of export sales to qualified countries can occur. This program, in CCCR's opinion, could greatly accelerate the conclusion of sales for factories to many countries." Further to the MOU it is incumbent upon CCCR to provide all of the necessary funding for the start-up, the building and equipping of the two factories, as well to under write all costs associated with the staffing of the two factories.

WTA Chairman and Chief Executive Officer Lyle Wardrop stated, "Canada enjoys a very friendly and favorable relationship with several emerging countries, such as many of the African countries as well as many of the former Soviet Union countries. These business and political relationships will enable WTA, through it's joint venture with CCCR, to enter markets formerly thought to be difficult, and now because of this business relationship, felt to be much more accessible."

C-to-C Corporate Resources Inc. has a strong presence in the telecommunications, high technology and health care industries and is now looking forward to applying its energies and talents towards the automotive sector via its relationship with WTA.

[pilcrow (paragraph sign)] At such time that all negotiations are concluded and final documentation has been entered into by both parties, WTA will release additional details by way of company press release.

Composite Automobile Research LTD and World Transport Authority Inc. serve the emerging world's transportation needs through in country manufacturing facilities, utilizing local semi-skilled labor to produce the WorldStar(R) line of utility vehicles.

This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. Refer to the WTA Web site WWW.WTAWorldstar.com and other sources for more detailed information.