AutoChina International Provides Update on Operations and Outstanding Matters

AutoChina International Limited AUTC today announced that the Company leased 3,446 commercial vehicles in the second quarter of 2011, compared to 4,130 in the second quarter of 2010. Since launching its commercial vehicle sales and leasing business in March 2008, the Company has leased over 27,000 trucks. The Company also announced that it recently closed on a new credit facility from existing lender CITIC Bank, a wholly owned subsidiary of China International Trust and Investment Corporation. The facility provides AutoChina with access to additional lending totaling up to RMB65 million (approximately $10.1 million). As announced on June 30, 2011, AutoChina is appealing the OCA's decision that the Earn-out Provision, which was part of its initial business combination in 2009, be treated as a derivative financial instrument. The appeals process is ongoing and has not yet concluded. The Company believes it is appropriate to wait until the appeals process has concluded before filing its audited financial results for the year ended December 31, 2010. AutoChina is working closely with its advisors, legal counsel, PricewaterhouseCoopers Zhong Tian CPAs Limited Company, and Crowe Horwath LLP to expeditiously resolve the appeals process and to prepare the necessary documents should the Company be required to restate its previously reported financial statements. As announced on June 30, 2011, the Company is being investigated by the SEC. This investigation began independently of the Company voluntarily bringing any accounting matters to the attention of the OCA, and the OCA process did not trigger the SEC investigation. The SEC has informed AutoChina that the investigation is a non-public, fact finding inquiry and does not mean that the SEC has concluded that AutoChina has committed any wrongdoing. AutoChina voluntarily disclosed the existence of the SEC inquiry on June 30, 2011. The Company continues to fully cooperate with SEC staff regarding their investigation.