SOURCE: Friendly Auto Dealers, Inc.

March 23, 2010 08:30 ET

Friendly Auto Dealers, Inc. Updates Shareholders on the Status Quo of Due Diligence Regarding Excellent Auto Dealers and Recent Directorial Changes

LAS VEGAS, NV--(Marketwire - March 23, 2010) - Friendly Auto Dealers (OTCBB: FYAD) announced today that it terminated all due diligence efforts towards completion of its attempted phased acquisition of Excellent Auto Dealers, Inc. that was previously announced by the Company on September 8, 2009. Mr. Gerry Berg, the Company's Managing Consultant for Mergers and Acquisitions, reported that insufficient financial auditing of Excellent Auto Dealers, Inc.'s records led to the decision by the Company to abandon the project.

Commenting on the Company's decision to terminate the project, Mr. Berg stated: "We encountered significant obstacles to gaining access to, and actually reviewing the financial records for Excellent Auto. This level of difficulty led me to conclude that the transaction envisioned by the Company could not be facilitated in a compliant manner going forward."

Friendly Auto Dealer's new Director and President, Ming R. Cheung, stated: "The Company was committed to vigorous due diligence, but unfortunately we ran into hurdles that could not be overcome. The decision to terminate the acquisition project was in the best interests of the shareholders as we could not foresee continuing a process that was unproductive."

Mr. Stephen Chu, Friendly Auto Dealer's Special Advisor and Consultant for Mergers and Acquisitions, also commented: "We have to focus our attention to new directions and new opportunities. Ms. Cheung directed me to continue to dedicate my time to the Pacific Rim. Mr. Berg will be focusing on North America."

Ms. Cheung concluded: "We will continue to work hard to build our company and thank our shareholders for their support and belief in our company. On behalf of management and everyone working for Friendly Auto, I sincerely thank all of our shareholders for their support."

In an unrelated matter, Ms. Cheung noted the Company's recent filing on Form 8-K on March 9, 2010, in which Mr. Tony H. Lam's resignation was reported coincidentally with Ms. Cheung's nomination and election as President and Director of the Company. No material disagreements existed between Mr. Lam and the Company prompting Mr. Lam's resignation.

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.

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:
    Ming R. Cheung
    1-702-321-6876