SOURCE: MWW Automotive

January 16, 2008 12:49 ET

MWW Automotive Reports Financial Performance, Funding and Acquisitions for Fiscal Year 2007

HOWELL, MI--(Marketwire - January 16, 2008) - Marketing Worldwide Corporation (OTCBB: MWWC) ("MWW"), d/b/a/ MWW Automotive , a leader in the design and manufacturing of car customization programs for major auto manufacturers, today announced that it filed with the SEC its annual report for the fiscal year that ended September 30, 2007.

MWW Automotive is reporting an extraordinary year, in which it concluded:

--  The acquisition of Colortek, Inc., a "Class A" painting facility in
    Baroda, Michigan.
--  A $3.5 million Series A Preferred Stock financing with Vision Capital
    Partners in New York.
--  Receipt of an additional $2 million through the exercise of warrants
    by Vision.
--  The opening of a new "Class A" Painting facility serving the
    recreational industry in Elkhart, Indiana.
--  The acquisition of Modelworxx GmbH, a leading edge design and
    engineering firm, providing design services to BMW in Munich, Germany.
--  The development of several new accessories for our largest customers,
    South East Toyota and Gulf States Toyota in the US, Toyota Canada and
    Toyota Germany.
--  The development of several programs for KIA USA/Mobis.
    

These are all major milestones in MWW Automotive's growth strategy. Accordingly, the Company recorded significant one-time non-cash and cash expenses and non-cash impairment charges related to the acquisitions and funding. Based on these extraordinary charges and recognized development cost for four new programs, net loss for the year was $6,896,847 on net sales of $7,454,053, compared to a net income of $305,950 in 2006. However, management improved its gross profit margin from 27% in 2006 to 33% in 2007. This resulted from a greater percentage of sales of higher margin spoiler products in 2007, as well as the Company's ongoing efforts to reduce manufacturing costs.

"The third and fourth quarters of 2007 mark a significant and extraordinary time period in the development of our company," said Michael Winzkowski, President of MWW Automotive. "Based on the unique acquisition opportunities that we took advantage of during 2007 and the non-cash charges associated with our sale of Series A Convertible Preferred Stock, our balance sheet and income statement reflect significant one-time expenses and write-downs. We believe that these actions considerably improved the competitive position of the company in the global marketplace. We have created a solid base of operational capacity and secured the cash required for exceptional future growth that our shareholders expect from us. Management regards the one-time non-cash expenses from the acquisitions and financing as key investments on our path to accelerated business expansion. Moreover, these steps have dramatically improved vertical integration. We believe that our cash position is sufficient for the next twelve months and expect the 2007 acquisitions to have a positive impact on our revenues and cash flow in future periods. The results of these decisions by management are expected to appear in the financial statements beginning with the second quarter of our current fiscal year 2008."

Strong Cash Position

During 2007, MWW concluded a Private Placement for $3.5 million in the form of a Series A Preferred Stock at a fixed price, providing the Company with the required cash to advance the company's expansion plan and provide the cash for additionally required investments into the newly acquired companies. In October of 2007 Vision Capital, the original investor of the Series A Preferred Shares, exercised warrants for $2 Million as part of its original investment, to accommodate any cash expenses associated with the acquisitions and business expansion.

Improving Vertical Integration

--  In June 2007, in accordance with our strategy for improved vertical
    integration, we successfully completed the acquisition of Colortek, Inc., a
    "Class A" automotive painting facility. This acquisition secured one of the
    most crucial and rare segments in our supply chain, allowing us to address
    additional large OE customers that require deep vertical integration for
    their certified suppliers. Colortek is already a certified supplier for
    Ford, Chrysler and GM, and MWW expects that Colortek will add significant
    additional revenue to MWW in the short and midterm.
--  In September of 2007 we began preparations for the opening of our new
    Class A painting facility in Elkhart, Indiana, serving a $15 Billion
    Recreational Vehicle industry. Subsequent to the release of our annual
    report, AutoFX commenced operations and is beginning to generate revenue.
    

Major Acquisition Expands Market Share

We ended our fiscal year of 2007 with the acquisition of Modelworxx, a leading edge design and engineering company based in Munich, Germany that supplies design services for BMW models and develops and manufactures innovative and high quality accessories for BMW and other European automobile manufacturers. The acquisition of Modelworxx immediately provides MWW with the status of a truly global design and manufacturing firm with deep designing and engineering capabilities and immediate access to profitable North American and European markets. Products designed by Modelworxx will also be sold in the North American markets, while MWW Automotive's US designed products will now have access to the European markets and will be sold through Modelworxx. Modelworxx has already made first shipments to Toyota Germany.

New Products

--  In the last part of fiscal 2007, we were awarded and concluded the
    development of five (5) major programs for Toyota in the US, Canada and
    Europe and four programs for Mobis/KIA USA and developed and launched
    stainless steel performance exhaust systems for the Toyota Tundra, Scion XB
    and Camry. The development costs of this have been recognized during fiscal
    2007. The Toyota programs are launching beginning January 2008, have a life
    span of 4-5 years and are expected to generate significant revenues running
    through 2013.
    
--  As part of our expansion into new product areas and large new
    customers, we have completed the development of our first production fog
    light kit for the new Scion XD in the Toyota Scion accessory group. This
    product is in final tooling and has gone into production in December for
    shipment in late January 2008.
    
--  MWW has developed and prototyped a new electrical product, applicable
    to any car model by any automobile manufacturer. The product has been fully
    developed and is currently in the final approval stages with several
    customers. MWW hopes to ship first product during the second quarter of
    2008. MWW has applied for a patent with the US Patent Office for this
    product.
    
--  Modelworxx developed a running board for installation on the Toyota
    Rav4 and a universal running board for installation on a wide range of SUVs
    from different automobile manufacturers. Initial shipments of the Rav4
    running board have been delivered to Toyota Germany and RFQs for the same
    board have been received from Toyota Europe.
    
--  MWW is also in various stages of joint product development with
    several other suppliers. These efforts were undertaken to expand our
    product offering and customer base, while reducing our development costs.
    The new product designs include accessories for Nissan and Toyota Motor
    Sales in the US. Expected launch dates for these products are the second
    and third quarters of FY 2008.
    

Summing up, Mr. Winzkowski concluded, "MWW's cash position provides the required capital to expedite the execution of our business plan. Accordingly, we continue to expand our management team and product roster with a strong focus on the proper integration of our acquisitions into the MWW Automotive Group for maximum impact. We have acquired new large customers such as KIA Motors USA (Mobis) and Toyota Europe, and we're aggressively pursuing others, focusing on the most successful large automobile manufacturers. Several new products have been developed and approved for upcoming high volume Toyota model launches. First shipments are expected in the first and second quarters of fiscal year 2008. We believe that the investments that we have executed during the past quarter position MWW for greater market share in our industry and greater long-term value for our shareholders."

The Company's Consolidated Statement of Income for FY 2008 and additional discussion of MWW's year-end results is available in the Form 10K filed at www.sec.gov.

About MWW Automotive

Marketing Worldwide Corporation d/b/a/MWW Automotive (OTCBB: MWWC) is a specialized, leading designer, manufacturer and certified Full Service Supplier of OE accessories for the global automotive industry for the customization of cars, sport utility vehicles and light trucks. Headquartered in Howell, Michigan, MWW has operations in the United States and Germany and delivers its products directly to select global automobile manufacturers' vehicle processing centers ("VPCs") and/or assembly lines in the United States, Canada and Europe. The VPC's and assembly lines' technical teams install the MWW products in a variety of vehicle types and deliver the accessorized automobiles into the dealer channels in the United States, Canada and Europe. The company's mission is to continue expanding its position as a global automotive company, to fully utilize its domestic and European design and manufacturing resources and to consistently design, manufacture and supply innovative, leading edge and high quality automotive accessories that satisfy customer demand within a global market. MWW's major customers are South East Toyota Distributors, Inc., Gulf States Toyota, Inc., Toyota Canada, Inc., Toyota Motor Manufacturing Corp in Canada, Hyundai and KIA Motors US in the US and BMW and Toyota Motor Europe in Germany and Belgium.

More information about MWW Automotive Group is available at www.mwwautomotive.com. Please email any questions about the company to investorrelations@mwwautomotive.com or contact Consulting for Strategic Growth 1 at info@CFSG1.com.

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."

Consulting For Strategic Growth1, Ltd. ("CFSG1") provides MWWAutomotive Group with consulting, business advisory, investor relations, public relations and corporate development services. Independent of CFSG1's receipt of cash compensation from MWW, CFSG1 may choose to purchase the Company's common stock and thereafter liquidate those securities at any time it deems appropriate to do so.

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