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MWW AUTOMOTIVE GROUP REPORTS SALES INCREASE FOR 3rd QUARTER FY 2008 (SALES UP 21% - GROSS PROFIT UP 2.4%)

HOWELL, Mich., August 14, 2008 MWW Automotive Group (OTCBB: MWWC) (“MWW”), a global design, engineering, and manufacturing company serving the world’s leading automotive manufacturers, reports increased revenues for the quarter ended June 30, 2008.

Net sales during the third quarter of 2008 were $1,879,347, an increase of $322,968, or 20.7 %, compared to $1,556,379 during the third quarter of 2007. This increase was due to additional sales of the company’s subsidiaries, Modelworxx and Auto FX. Gross margins for the second quarter of 2008 increased to 36.1 % from 33.7 % in the same period of 2007 due to improvements in material costs and efficiencies in the company’s product/service mix, and the improved utilization of MWW’s production and service facilities and global design and engineering resources.

Net sales during the nine-month period ended June 30, 2008, were $6,905,750, an increase of $946,422, or 15.8%, compared to $5,959,328 during the nine-month period ended June 30, 2007. This increase was due to additional sales of Modelworxx and Auto FX. Gross margins for the nine months increased to 34.6% from 30.9% in the same period of 2007 due to improvements in material costs and efficiencies in the company’s product/service mix, and the better utilization of MWW’s production and service facilities and global design and engineering resources.

“We are making rapid progress integrating our acquisitions and taking advantage of the synergies from these relationships,” said Michael Winzkowski, CEO of MWW Automotive. “We are continuing on our path of providing outstanding integrated services to our existing customers and are aggressively pursuing new customers, especially in Europe, with a special focus on Russia, as well as Mexico and South America.  The businesses that we acquired in 2007 provide us with even stronger capabilities for leading edge design and engineering, and they support our unequivocal devotion to the highest quality standards for our products and our transformation to become a true global company. We believe that these acquisitions will have a positive impact on our financial performance in the near- and mid-term.”

Recently, MWW Automotive was awarded new programs for automotive accessories on vehicles sold in North America and Europe. The new programs for 2009 models manufactured by Toyota Motor Corporation are expected to contribute $7 million to $9 million to revenue during the lifespan of the programs. In addition, MWW Automotive’s German subsidiary, Modelworxx GmbH, has begun delivering new accessory programs designed by MWX in Germany to Toyota Motor Europe.

The acquisition of Modelworxx GmbH will now allow MWW Automotive to sell products originally designed and manufactured for the North American market into the European markets. Similarly, MWW Automotive is bringing products designed in Germany for the European markets into the North American markets.  Moreover, the European market, aided by the strong Euro currency, provides opportunity for increasing sales growth and sustainable margins. Through Modelworxx, MWW now has “local” representation on the front line of a steadily growing market for its products, a must for being successful in the European market.

About MWW Automotive Group

MWW Automotive Group is a full-service global design, engineering and manufacturing firm providing customized accessories for leading international vehicle manufacturers. MWW's products customize cars, sport utility vehicles (SUVs) and light trucks to meet consumer demand for vehicles reflecting their individual lifestyles and personalized needs. Noted for its innovative designs and adherence to the highest quality, MWW and its global subsidiaries provide substantial added value to the sale of vehicles for leading international automobile manufacturers such as Toyota, Kia Motors, GM, and Ford in the US and Europe.

Headquartered in Howell, Michigan and Munich, Germany, MWW delivers its products and services directly to select global automobile manufacturers' vehicle processing centers, distribution centers and/or assembly lines in the United States, Canada and Europe. The centers’ technical teams install the MWW designed and manufactured products in a variety of vehicle types and deliver the accessorized automobiles into the dealer channels in their respective countries.

The company’s mission is to manifest its position as a truly global automotive company and to fully utilize its combined U.S. and European design and manufacturing resources to consistently provide the most innovative and leading edge automotive accessories for an increasingly demanding global market.

The Company also provides proprietary design services directly to BMW from within the BMW design facility in Munich, Germany. For more information please visit www.mwwautomotive.com and www.modelworxx.com or e-mail investorrelations@mwwautomotive.com.

Safe Harbor Statement
Certain statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as “anticipate,” “believe,” “expect,” “future,” “may,” “will,” “would,” “should,” “plan,” “projected,” “intend,” and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company’s future operating results are dependent upon many factors, including but not limited to the Company’s ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company’s control; and (iv) other risk factors discussed in the Company’s periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under “Search for Company Filings.”


Contact: The Investor Relations Group 212-825-3210

Investor Relations:

Adam Holdsworth aholdsworth@investorrelationsgroup.com or

Erica Ruderman eruderman@investorrelationsgroup.com or

Brett Foley bfoley@investorrelationsgroup.com or

Media Relations:

Laura Colontrellel colontrelle@investorrelationsgroup.com or

Andrew Conn aconn@investorrelationsgroup.com

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Source: MWW Automotive Group

 

 



 
   

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