Transnational Automotive Group, Inc.
OTC Bulletin Board : TAMG

Transnational Automotive Group, Inc.

November 16, 2006 09:30 ET

Transnational Automotive Announces $800,000 USD Investment by the Chamber of Commerce of Cameroon

LOS ANGELES, CALIFORNIA--(CCNMatthews - Nov. 16, 2006) - Transnational Automotive Group, Inc. (OTCBB:TAMG) ("TAUG"), today announced an $800,000 USD investment by the Chamber of Commerce, Industry, Mines and Handicraft ("CCIMA") of Cameroon in TAUG's Cameroon subsidiary "LeBus". LeBus is TAUG's operating city bus company in Cameroon.

LeBus formally launched its operations in the capital city of Yaounde in Cameroon on September 25, 2006 with 17 new city buses representing a significant milestone for the company. Daily ridership has grown steadily to approximately 12,500 passengers per day. The company is currently experiencing a growth rate of 2% per week and has generated over $100,000 USD in revenue during its first month of operation.

Achieving this milestone triggered the $800,000 USD investment from the CCIMA. LeBus has now received a total of $1,800,000 USD in cash from CCIMA and from the Stabilization Fund for Hydrocarbon Prices ("CSPH") to be used for working capital. Other cash and non-cash investments totaling an additional $5,000,000 USD has been made by the Yaounde Urban Council ("YC") and has been used for road and transit infrastructure development. Total cash and non-cash contributions of $6,800,000 USD have been contributed to the project, earning the various Cameroonian entities a 34% equity stake in "LeBus".

"The $6,800,000 USD cash and non-cash investments from CSPH, CCIMA and YC demonstrate the commitment to this project from the Cameroon Government. CSPH, CCIMA and YC have been powerful and influential partners and the value of their collective investments in this project is further demonstrated by the expertise they provide us on a daily basis as we develop our business in Cameroon," said Mr. Don Durand, President for Africa Operations.

"This recent contribution of $800,000 USD will be used to purchase tools, equipment and spare parts for the buses as well as providing a healthy cash reserve to sustain the operation until our next shipment of 30 buses arrives in Cameroon early in 2007. This shipment should put the company into a cash-flow positive position and should enable us to fund our growth into the rest of the country," continued Mr. Durand.

Transnational Automotive Group, Inc. ("TAUG"), a Nevada corporation that trades under the symbol (OTCBB:TAMG), is a transportation and sustainable energy company headquartered in Los Angeles, CA, with operating entities in Cameroon and early-stage operations in Ethiopia, Nigeria and Mozambique.

TAUG is currently engaged in establishing and operating mass transit systems in leading African leading commercial and population centers, beginning in Yaounde and Douala, Cameroon. The company is also positioning itself for expansion into additional African markets (including Ethiopia and Nigeria) and industry sectors - including manufacturing and marketing sustainable bio-diesel fuels. TAUG's vision is to become the leading transportation and sustainable energy company on the African continent, and to establish key infrastructure and workforce development that dramatically accelerates Africa's economy and quality of life.

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents files from time to time with the Securities Exchange Commission.

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