SOURCE: Friendly Auto Dealers, Inc.

September 08, 2009 18:17 ET

Friendly Auto Dealers, Inc. Announces Entry Into Memorandum of Understanding to Merge With Chinese Automobile Dealership Consortium

LAS VEGAS, NV--(Marketwire - September 8, 2009) - Friendly Auto Dealers (OTCBB: FYAD) announced today that based upon the recent efforts of Mr. Tony Lam, the Corporation's Chairman of the Board of Directors and Chief Executive Officer, Friendly Auto Dealers, Inc. signed a Memorandum of Understanding with Excellent Auto Consulting, Inc. leading to the Corporation's acquisition of Excellent Auto Consulting, Inc. and its existing business operations both in the People's Republic of China, and potential business opportunities worldwide.

Excellent Auto Dealers, Inc. is 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. Its business is primarily comprised of the ownership and operation of a cluster of automobile dealerships in the Province of Guangzhou. There, Excellent Auto Consulting, Inc., by and through its contractual ties with various foreign and domestic automobile manufacturers, including South Korean KIA Motors, sells vehicles on the Chinese retail market, now poised to become the largest marketplace worldwide. Presently, China is the second largest market in automobile sales, following only the United States. However, based upon recent sales figures, many industry analysts believe that China will surpass the United States in overall worldwide sales this year. It has also been noted that the Chinese automobile market has weathered the worldwide economic downturn better that most other western industrialized nations, including the United States.

Excellent Auto Dealers, Inc. has plans to establish and build "Automobile Sales Malls" both in the Province of Guangzhou and elsewhere in the People's Republic of China and potentially worldwide that would increase and build upon the success it has achieved in the Province of Guangzhou.

The Memorandum of Understanding places obligations upon Friendly Auto Dealers, Inc. and Excellent Auto Consulting, Inc., and focuses on (i) Friendly Auto purchasing all or a majority of the outstanding capital voting stock and/or all legal right, title and interest in Excellent Auto; (ii) arriving at an acceptable plan whereby the various business already underway at each company may proceed pending the further negotiation between the Parties; (iii) the allowance of adequate time for the conducting of due diligence by each Party; and, (iv) negotiating and completing a Definitive Material Agreement.

Due diligence is already underway, and Excellent Auto Consulting, Inc. engaged an auditor in the Peoples Republic of China to conduct an audit of its financial records for presentation to Friendly Auto Dealers, Inc.

The express terms of the Memorandum of Understanding provides that the parties goal is to expeditiously complete due diligence and arrive at a final Definitive Material Agreement by December 31, 2009, with provisions for extensions of time should the need arise and the parties be inclined to continue towards completion.

Tony Lam, Friendly Auto's Chairman and Chief Executive, commented: "This MOU partially culminates the work I undertook in making my trip to China earlier this summer and holding continued talks in Las Vegas recently with officials of Excellent Auto Consulting, Inc. Everyone at Friendly Auto Dealers, Inc. is very excited about the prospects presented by the MOU, and we are working diligently to provide due diligence and request same from Excellent Auto Consulting, Inc. so that work on the Definitive Material Agreement can commence. I intend to keep the shareholders informed on progress."

About Friendly Auto Dealers

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

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