CHAMCO AUTO Forms Chamco West to Serve as Exclusive Distributor for Vehicles from China.

PARSIPPANY, N.J. -- CHAMCO AUTO, a NJ-based distribution and engineering company, announced the formation of CHAMCO AUTO West (Chamco West) as the exclusive distributor for CHAMCO AUTO's Chinese and other subsidiaries' vehicles. Chamco West, which is fifty percent owned by Scott Thomason, founder and former CEO of Thomason Auto Group, and Brad Shaffer, a First Vice President at Merrill Lynch, will handle distribution for the states of California, Nevada, Wyoming, Montana, Idaho, Washington, Oregon, Alaska and Hawaii. The first CHAMCO AUTO SUVs and Pickups, manufactured in China by ZXAUTO, are expected to arrive in North America in late 2008.

"The formation of Chamco West supports market research indicating that regional distributors achieve up to 50% greater penetration than importers acting on their own," says Bill Pollock, Chairman of CHAMCO AUTO. "Our plan is make Chamco West one of 10 regional distribution subsidiaries for the U.S., Canada, Mexico and Puerto Rico, and the company is actively recruiting recognized automotive leaders to achieve this goal. CHAMCO AUTO is on track to be the first company to import high quality, affordable Chinese SUVs and pickup trucks to North America in 2008, and our regional distribution centers will play a big role in making that a success."

Thomason, who currently owns dealerships in Houston and the San Francisco Bay area, will serve as CEO of Chamco West, assuming responsibility for completing CHAMCO AUTO's western U.S. dealer network, with 35 to 50 initial selling points. Described by Automotive News as "one of the top 125 auto dealers in the U.S.," Thomason founded the Thomason Auto Group, which had 2007 sales of $2.49 billion, selling more than 116,000 vehicles. Chamco West's other part owner, Brad Shaffer, controls over $1 billion in wealth equity investment funds at Merrill Lynch.

"I look forward to leading the first group of west coast dealers with CHAMCO AUTO, importing ZXAUTO's stylish, affordable SUVs and pickups," stated Thomason. "We will be ready to hit the ground running in 2008."

Brad Shaffer added, "I am pleased to have the opportunity to invest in Chamco West. I have great confidence that the CHAMCO AUTO team will produce dramatic results in 2008 and beyond."

CHAMCO AUTO, China America Cooperative Automotive, Inc. (www.chamcoauto.com), is a management holding corporation whose mission is to own and operate subsidiaries, now in existence or to be formed in the future, that will be the premier North American importers, marketers, and distributors of entry-level automotive products- including SUVs, Pickup trucks, Crossovers, Compacts, Sedans, Hybrids and Sports Cars- produced in China and elsewhere in the world. The company plans to import the first of these cars from China in 2008.