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AutoChina International Closes on $53.9 Million in New Bank Facilities

^{Published on 2010-08-30 05:35:22 - Market Wire}
 

SHIJIAZHUANG, China--([ BUSINESS WIRE ])--AutoChina International Limited (aAutoChinaa or the aCompanya) (NASDAQ: AUTC), Chinaa™s largest commercial vehicle sales, servicing, leasing, and support network, today announced that the Company closed on new bank loans with the Industrial and Commercial Bank of China Ltd. (aICBCa) totaling RMB166 million (approximately $24.5 million). These loans each have ten month terms with an initial annual interest rate of 5.31%. The Company previously announced a similar facility with ICBC totaling RMB84 million (approximately $12.4 million) in July 2010. A total of RMB250 million has now been borrowed by the Company from ICBC.

The Company also closed on a new RMB200 million (approximately $29.4 million) bank loan from Hua Xia Bank. The loan has a 2 year term with an initial annual interest rate of 5.94%. The Company now has total borrowings of RMB280 million (approximately $41.19 million) from Hua Xia Bank.

Since July 2010, the Company has announced entering into approximately $78.0 million of new loan facilities with its three existing Chinese bank lenders: ICBC, CITIC Bank and Hua Xia Bank, and continues to work closely with each to secure additional financing.

About AutoChina International Limited:

AutoChina International Limited is Chinaa™s largest commercial vehicle sales, servicing, leasing, and support network. AutoChinaa™s operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. The Company owns and operates 193 commercial vehicle financing centers across China; and primarily provides sales-type leasing and support services for local customers. The Companya™s website is [ http://www.autochinaintl.com ].

Safe Harbor Statement:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:

• Continued compliance with government regulations;
• Changing legislation or regulatory environments;
• Requirements or changes affecting the businesses in which the Company is engaged;
• Industry trends, including factors affecting supply and demand;
• Labor and personnel relations;
• Credit risks affecting the Company's revenue and profitability;
• Changes in the acommercial vehiclea or aheavy trucka industry;
• The Companya™s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel;
• Changing interpretations of generally accepted accounting principles;
• General economic conditions; and
• Other relevant risks detailed in the Companya™s filings with the Securities and Exchange Commission.

The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.