Autoworks International Designs New Software Module ''ValuMaxx'' for Automobile Insurance Industry

ValuMaxx, is designed to maximize the revenue received by insurersfrom vehicles deemed to be automobile salvage and from automobilesunder repair implemented by insurers. The software module may assistin managing costs not only in individual insurers portfolio of salvagevehicles in a cost effective manner, but also in integrating allparticipating insurance companies and stakeholders in various phasesof repair programs.

One of the key areas of concern to automobile insurers is theaverage cost per automobile repair claim. Typically, a significantpercentage of damaged vehicles is recognized as salvage vehicles byinsurers and auctioned to dealers and individual buyers. In thisevent, the insurance company is obligated to pay to the insured, theActual Cash Value (ACV) of the vehicle appraised at the time of theaccident. Proceeds from automobile salvage auctions, typically recoveronly up to 30% of the vehicle's ACV. The balance must then be paid bythe insurance company to the insured in order to settle the propertydamage claim.

ValuMaxx, currently under development by the company, may provideautomobile insurers with the opportunity to generate significantlyhigher automobile salvage revenue on the disposal of vehiclesconsidered to be salvage material.

Under the business model implied by ValuMaxx, the salvage vehiclesare aggregated into inventory at auto recyclers with whichstakeholders have developed joint venture relationships. Rather thanselling the salvage vehicles to wholesales they are instead dismantledof high value and high volume crash parts, appraised and allocated toan inventory directory on behalf of automobile insurers. The inventoryof usable parts is then distributed as required for ongoing automobilerepairs for other vehicles preventing the insurer from purchasing therequired used parts from automobile recyclers. As a result,significant cost savings by insurers may be generated per repairclaim.

Also, insurers will have the capability to exchange used partswith their peers at preferred rates, generating additional costsavings on any given repair claim. Additional revenue streams mayresult from the sale of mechanical or electrical parts to automobilerepair facilities and from the sale of major component parts to coreremanufacturers of salvaged parts not suitable for immediate resale.

Severely damaged vehicles will either be sold at automobilesalvage auctions or crushed and recycled as scrap metal, maximizingall potential salvage revenue streams for insurers. Approximately 15%of all vehicles involved in collisions are disposed of by the insurer,resulting in the removal from service of approximately 15 millionvehicles annually.

According to the Automotive Recycling Association, the totalautomotive recycling sector generates approximately $15 billion U.S.per annum in revenue. This includes vehicles disposed of aftercollision, theft, loss by fire, or water damage. Insurance companiesaccount for the majority of vehicles entering the automotive recyclingsystem.

Autoworks International Limited is an international softwaredesign, development and services provider focused primarily ongenerating internet based proprietary application software solutionsfor industries that may benefit from enhanced business to businesscommunications, systems integration and coordination between theirindustry stakeholders. The software and services offerings maygenerate operating efficiencies and improved profitability to variousindustry participants.

Cautionary statement for purposes of the "Safe Harbor" provisionsof The Private Securities Litigation Reform Act of 1995: Anystatements in this report that refer to the forecasted, estimated oranticipated future results of Autoworks International Limited("Autoworks" or the "Company") are forward-looking and reflect theCompany's current analysis of existing trends and information. Actualresults may differ from current expectations based on a number offactors affecting Autoworks businesses, including competitiveconditions and changing market situations. Matters affecting theeconomy generally, including the state of economies worldwide, canaffect Autoworks results. Forward-looking statements represent theCompany's judgment only as of the date of this report. Since actualresults could differ materially, the reader is cautioned not to relyon these forward-looking statements. Moreover, Autoworks disclaims anyintent or obligation to update these forward-looking statements.