SOURCE: Friendly Auto Dealers, Inc.

October 22, 2009 09:00 ET

Friendly Auto Dealers, Inc. Updates on Preliminary Due Diligence With Excellent Auto Consulting, Inc.

LAS VEGAS, NV--(Marketwire - October 22, 2009) - Friendly Auto Dealers (OTCBB: FYAD) announced today that it has received preliminary financial reporting on the Company's proposed merger candidate, Excellent Auto Consulting, Inc. of the Peoples Republic of China. Mr. Stephen Chu, the Company's Special Advisor and Consultant for mergers and acquisitions who is heading up the Company's due diligence team, visited Excellent Auto Consulting beginning on September 17, 2009, to begin due diligence regarding Excellent Auto Consulting's existing business operations both in the People's Republic of China, and potential business opportunities worldwide.

Mr. Chu's visit follows on the heels of the Memorandum of Understanding signed between Excellent Auto Consulting and the Company on September 8, 2009, whereby the Corporation announced it intended to acquire Excellent Auto Dealers, Inc., a corporation formed and operating in good standing in the British West Indies, whose principal place of business is in the Peoples Republic of China and more particularly in the Province of Guangzhou. Excellent Auto Consultants owns and operates a cluster of automobile dealerships in the Province of Guangzhou.

Mr. Chu examined tax returns for the first of the dealerships making up the Excellent Auto Consortium, and reported that for 2008 Excellent reported revenues on its tax returns of twenty million U.S. Dollars ($20,000,000.00) and profits after expenses of approximately five million U.S. Dollars ($5,000,000.00). Presently, representatives of the Company are auditing Excellent Auto's financials in China and both entities are engaged in due diligence efforts towards meeting a goal of entering into a material definitive agreement by December 31, 2009. The Company expects to make more announcements as information becomes available through due diligence efforts.

Mr. Tony Lam, the Company's Chief Executive Officer, commented: "This is a very exciting time for Friendly Auto Dealers. Based solely on the financials reported in the Excellent tax returns for this first dealership, the proposed acquisition of the Excellent Auto Consortium of dealers could give Friendly Auto Dealers an estimated net earnings of five million dollars U.S. ($5,000,000.00) or eighteen cents U.S. ($0.18) per share based on the present number of issued and outstanding shares of the Company. We feel that if we can complete this acquisition then we will be substantially undervalued at today's current stock price. We would like our current shareholders to understand the potential of such an acquisition for the value of their stock."

Mr. Chu commented: "Considering that most companies trade at a multiple of earnings an acquisition of this magnitude could drastically improve the current valuation of FYAD stock."

"We are spending all of our time and resources to complete the proposed acquisition and so far so good," Mr. Lam said.

ABOUT FRIENDLY AUTO DEALERS, INC.

Friendly Auto Dealers is a start-up company incorporated on August 6, 2007, under the laws of the State of Nevada. The principal offices are located at 4132 South Rainbow Boulevard, Suite 514, Las Vegas, Nevada. The telephone number is (702) 321-6876. The fax number is (702) 939-0655. Friendly Auto Dealers is a developer and seller of customized apparel and consumer products and logos in China.

Safe Harbor Statement

To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.

Contact Information

  • For more information please contact:

    A.S. Austin & Co.
    Investor Relations
    702-609-7559