AutoTradeCenter Canada Ltd.
TSX VENTURE : ATO

AutoTradeCenter Canada Ltd.

November 08, 2005 17:19 ET

AutoTradeCenter Canada Announces Restructuring of Operations and Focus on Near-Term Growth Opportunities

LETHBRIDGE, ALBERTA--(CCNMatthews - Nov. 08, 2005) -

Not for dissemination in the United States of America

AutoTradeCenter Canada Ltd. (TSX VENTURE:ATO) (the "Company", "ATC Canada") announces that it is restructuring its operations to reduce burn and to focus on growing its inspection business. For the past two years ATC Canada has sought to offer an end-to-end packaged solution to bring wholesale vehicle remarketing in Canada online. These comprehensive services included inspections, closed auctions, open auctions and after auction support services. While there is clear evidence that the industry is moving to manage their inventories online, the sales cycle for implementing ATC Canada's full suite of services is not yet established. Instead, and based on direct experience, ATC Canada will now focus on the continued implementation and deployment of the inspection technology that it licenses from cDemo Inc. The inspection business is large and ATC Canada has access to a technology that is scaleable and easy to deploy. Additionally, the associated revenue is predictable and management of ATC Canada expects that it will allow the Company to achieve cash flow break-even in calendar year 2006.

As a result of the restructuring, ATC Canada is also announcing its decision to terminate the closed and open auction agreements with AutoTradeCenter Inc. AutoTradeCenter Canada has made the decision not to continue with the auction services agreement because of the additional costs and extended timeline that it is taking for clients to adopt the auction technology. AutoTradeCenter Inc. has agreed to take over the operations relating to the auction side of AutoTradeCenter Canada's business and they will continue to deliver and support those services to Canadian customers.

About AutoTradeCenter Canada

ATC Canada will focus on the implementation and deployment of the inspection technology that it licenses from cDemo Inc. This inspection technology standardizes the vehicle assessment data collection process and enables clients to easily manage and distribute their on-line 'virtual' vehicle' information.

Statements in this release which describe the Company's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. The Company may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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