Autoworks International Limited
Autoworks International Limited: AUTOWORKS INTERNATIONAL LIMITED ENTERS DISCUSSIONS WITH USA BASED AUTOMOBILE INSURANCE COMPANY
Corporate-news transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Toronto Canada, April 5, 2006. Autoworks International Limited today
announced that management of its wholly owned subsidiary Parts Direct has
entered into discussions with one of the largest automobile insurers in the
United States.
“Discussions regarding Parts Directs’ on-line parts purchasing program have
been on going in Canada” stated Brad Brock, president. “On-line
demonstrations regarding our software products and services have also been
requested by an automobile insurer located in the United States. Currently
we are focusing our corporate resources and attention to serve the Canadian
automobile insurance market, however we are very interested in expanding
our operations into the United States.”
If current and future discussions with any United States based automobile
insurance companies result in engaging the services of Parts Direct,
management believes that it could establish a sales office in the United
States by the fourth quarter of 2006 in order to adequately service this
market.
Management estimates the aggregate value of automobile aftermarket
replacement parts industry in the United States exceeds $1.0 billion
annually. Currently, Parts Direct is unaware of any competitors in its
market space.
Parts Direct is an on-line automated automobile replacement parts
purchasing platform that allows insurance companies to purchase parts from
the company at discounted prices than would otherwise be available from
parts retailers.
The replacement parts purchased by insurers are procured by Parts Direct
from wholesale parts distributors and ‘drop shipped’ to the appropriate
automobile repairer. This procedure contrasts significantly with current
industry standard practices, where each individual automotive repairer
purchases and invoices the insurance companies for the retail value of
these parts.
According to Collision Parts Replacement Market Industry Overview, dated
June 2005, the aggregate value of the automobile replacement parts market
in the United States is approximately $16 billion. The aggregate value of
the automobile repair industry in the United States is approximately $35.8
billion including independent and franchised automobile repairers
The automobile repair market encompasses the total costs incurred to repair
damaged vehicles. Parts and labor are the two major components involved in
vehicle repair, with parts comprising approximately 45% of the total cost
of repairs.
Autoworks International Limited is an international software design,
development and services provider focused primarily on generating internet
based proprietary application software solutions for industries that may
benefit from enhanced business to business communications, systems
integration and coordination between their industry stakeholders. The
software and services offerings may generate operating efficiencies and
improved profitability to various industry participants.
Cautionary statement for purposes of the ‘Safe Harbor’ provisions of The
Private Securities Litigation Reform Act of 1995: Any statements in this
report that refer to the forecasted, estimated or anticipated future
results of Autoworks International Limited (‘Autoworks ‘ or the ‘Company’)
are forward-looking and reflect the Company’s current analysis of existing
trends and information. Actual results may differ from current expectations
based on a number of factors affecting Autoworks businesses, including
competitive conditions and changing market situations. Matters affecting
the economy generally, including the state of economies worldwide, can
affect Autoworks results. Forward-looking statements represent the
Company’s judgment only as of the date of this report. Since actual results
could differ materially, the reader is cautioned not to rely on these
forward-looking statements. Moreover, Autoworks disclaims any intent or
obligation to update these forward-looking statements.
Contact:
Capital Communication
investors@capital-communication.de
www.capital-communication.de
(c)DGAP 07.04.2006
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language: English
emitter: Autoworks International Limited
27 Harlech Court
Thornhill, Ontario L3T 6L5 Kanada
phone: –
fax: –
email: investors@autoworks-international.com
WWW: www.autoworks-international.com
ISIN: CA05334R1064
WKN: A0JDEX
indexes:
stockmarkets: Open Market in Frankfurt
End of News DGAP News-Service
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