Auto Underwriters of America Executes $700,000 Floor Plan Agreement
Exhibit
99.1
For
Immediate Release:
Auto
Underwriters of America
Executes
$700,000 Floor Plan Agreement
Houston,
Texas, January 23, 2007 - Auto Underwriters of America,
Inc.
(OTC BB: ADWT), a non-prime vehicle lender and specialty auto retailer, has
entered into a new lending agreement that will provide short-term financing
of
vehicle inventory for the Company’s four retail car sales centers in Houston,
Texas. The $700,000 floor plan financing will enable the Company to increase
the
number of late model, pre-owned cars, trucks and suv’s that it purchases from
area auctions, vehicle wholesalers and new car franchise stores. The Company
expects that the new arrangement will enable it to increase its sales inventory
by approximately 100 vehicles per month, bringing the number of vehicles that
it
will maintain for sale at its Houston stores to more than 200.
Auto
Underwriters’ President, Xxxx Xxxxxxx, commented that the new financing
agreement is timed to coincide with the Company’s busiest car-selling season.
“January through April is usually the industry’s busiest time of the year
because of the large number of people who use income tax refunds to make auto
purchases. Auto Underwriters makes the process easy and seamless by actually
preparing the buyer’s tax return and applying the refund as the down payment.
The shared benefits of this service are obvious; the buyer does not have to
wait
for the refund to purchase a car, and the Company instantly recognizes a sale.
While our tax service makes a purchase easier, our new floor plan arrangement
will enable us to provide the buyer with a wider selection of vehicles from
which to choose.”
Headquartered
in San Jose, California, Auto Underwriters of America, Inc. is a growing
Company, engaged in non-prime auto financing, specialty automotive retailing
and
direct lending. The Company acquires directly or through intermediaries
installment contracts originated by automobile dealers in connection with their
sale of new and used vehicles to borrowers with limited credit histories or
past
credit problems. Auto Underwriters also provides financing programs to
automobile dealers through its Web site, xxxxxxxxxxxxxxxx.xxx, which allows
dealers to input various fields of information into an online financing
application and obtain an automatic credit decision. In addition, the Company
operates specialty automotive dealerships and provides direct lending services
for the buy here, pay here market.
Disclosure
Statement
The
Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made on behalf of the Company. Some statements in
this release, including statements regarding management's expectations for
future financial results and access to capital markets, are forward-looking
statements. Investors are cautioned that these forward-looking statements
regarding Auto Underwriters of America, Inc., its operations and its financial
results involve risks and uncertainties, including risks of accessing capital
markets on terms acceptable to Auto Underwriters, downturns in economic
conditions generally and specifically in the lending and in the retail auto
markets; risks regarding market acceptance of and demand for Auto Underwriters’
products and services; risks of failing to attract and retain key managerial
and
technical personnel; risks associated with competition and competitive pricing
pressures; risks associated with investing in new businesses; and risk
associated with litigation.
Contacts
|
Xxxx
Xxxxxxx
Investor
Relations
000-000-0000
|
Xxxx
Xxxxxxxxx
(000)
000-0000
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