AutoChina Comments on Share Price Activity; Affirms Positive Outlook

AutoChina International Limited (“AutoChina” or the “Company”) (NASDAQ: AUTC, AUTCW, AUTCU), a leading one-stop commercial vehicle sales and leasing company in China offering its customers affordable lease-to-own options, today announced that it believes the recent decline in the price of its common stock is related to the current redemption of its approximately 4.2 million outstanding ordinary share purchase warrants. As announced on December 8, 2009, the final redemption date for the warrants will be January 8, 2010. Assuming exercise of all of the issued and outstanding warrants, AutoChina would receive gross proceeds of approximately $21.0 million and there will be a total of approximately 15.2 million ordinary shares of AutoChina issued and outstanding.

AutoChina’s Chairman and CEO, Mr. Yong Hui Li, noted, “We are very pleased with the operations of our business and would like to emphasize that our fundamentals remain intact. We also remain optimistic about our future prospects. For the third quarter ended September 30, 2009, commercial vehicle sales rose by nearly $86 million, driven in large part by the expansion of our commercial vehicle sales and leasing business to 150 branches in China. Net income for the 2009 third quarter increased by 129.8% and Adjusted EBITDA rose by 118%. Importantly, our expansion efforts are supported by a strong financial position that will be further bolstered by the completion of the sale of our consumer auto dealership business earlier this week and the future receipt of up to $21.0 million from the redemption of our ordinary share purchase warrants.”

About AutoChina International Limited:

AutoChina International Limited is a leading one-stop commercial auto financing and sales company in China. AutoChina’s operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. The Company’s website is http://www.autochinaintl.com.

Safe Harbor Statement:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:

Continued compliance with government regulations;
Changing legislation or regulatory environments;
Requirements or changes affecting the businesses in which the Company is engaged;
Industry trends, including factors affecting supply and demand;
Labor and personnel relations;
Credit risks affecting the Company's revenue and profitability;
Changes in the automobile industry;
The Company’s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel;
Changing interpretations of generally accepted accounting principles;
Whether the transaction to sell the automobile dealership business is consummated;
General economic conditions; and
Other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission.

The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.

Autochina International Limited - Warrant 02/26/2013 (Cayman Islands) (MM) (NASDAQ:AUTCW)
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