AADCO Announces Direct Supplier Program Agreement With Co-Auto Co-Operative Inc

AADCO Automotive Inc. (TSX-V: AA) announces it has signed a Direct Supplier Program Agreement with Co-Auto Co-Operative Inc. (“Co-Auto”), the largest Co-operative Buying Group for Ontario New Car and Truck dealers made up of 470 members and 580 associate members. This agreement makes AADCO the Direct Supplier to Co-Auto’s 1050 member and associate member establishments in Ontario for the use of LKQ (quality used Original Equipment Manufactured auto parts), focusing on 3-8 year vehicle parts.

Launched in 1979, Co-Auto Co-Operative Inc. built its success on its ability to save the dealership money through its competitive pricing, rebate programs and profit sharing. Ultimately, these savings are realized through the volume purchasing made possible by the Co-Operative Buying Group.

This agreement further evidences AADCO’s plan to increase corporate profitability through the complete fiscal restructuring of the company in Q4 2003 and the successful implementation of new managements’ plan to increase sales, sales channels and manage costs. Part of that strategy is to become the leading supplier of LKQ (used original equipment auto parts) to the repair industry driven by the insurance industry’s need to lower claims costs in a no-premium increase environment. A significant number of Co-Auto members do insurance repairs, and this agreement allows for cost savings to materialize to Co-Auto. Additionally, AADCO is providing LKQ parts through existing automotive retail and shop channels as end users become familiar with the value proposition that these parts offer.

Now Co-Auto members have the incentive to assist in the implementation of this important part of AADCO’s strategy. States AADCO’s CEO, Charles Hodgkinson, “I am pleased that Co-Auto has agreed to make AADCO its Direct Supplier to its substantial member network in Ontario for LKQ used auto parts. It is further confirmation that the indoor, eco-sensitive, dismantling process and storage pioneered by AADCO is now being recognized and valued by the automotive marketplace. More and more, those dealerships that are most competitive in today’s marketplace are looking to develop their customers for life. They now recognize the value proposition created by utilizing the standard of quality used parts developed by AADCO, for repairs to those customers with older vehicles is a key component in maintaining their customers for life.”

The TSX – Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release includes forward-looking statements, including statements relating to the Company’s marketing strategy, future sales growth, profitability, competitive position, and release of new products. The words “plan,” “expect,” “believe,” “intend,” “anticipate,” “forecast,” “target,” “estimate” and similar expressions identify forward-looking statements. Forward-looking statements are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. The Company does not undertake to review or update these forward-looking statements.

About AADCO Automotive Inc.

AADCO’s objective is to establish AADCO as the first choice supplier of quality recycled automotive parts to the automotive repair industry and provide superior financial returns for its shareholder, and do so in as environmentally friendly fashion as possible. More information is available at http://www.aadco.ca/