AADCO continues to improve operating performance



    (AA: TSX - Venture Exchange)

    BRAMPTON, ON, March 1 /CNW/ - AADCO Automotive Inc. ("AADCO" or the
"Company"), a supplier of quality used automotive parts, today announced its
financial results for the six month period ended December 31, 2006. The
operating results continue to improve from prior years as the Company
continues to improve its operating capability.
    The Company reduced its operating loss before interest and amortization
to $310,000 in the first six months of the current year from $465,000 for the
same period last year. Sales for the current period were $1,817,000 compared
to $2,311,000 in the prior year. However gross margins improved from 34.8% for
the six month period ended December 31, 2005 to 39.5 in the same period this
year. Operating expenses were lower by 19% falling from $1,271,000 in the
first six months of fiscal 2006 to $1,028,000 in the same period this year.
    The net loss after a charge for stock-based compensation of $37,600 and
the costs associated with the termination of a proposed acquisition of
$217,000 was $875,000 for the first six months of fiscal 2007 compared to
$839,000 for the first six months of fiscal 2006. The loss in fiscal 2006
included a restructuring gain of $49,000 and a loss from discontinued
operations of $24,000.
    Added Charles Hodgkinson, CEO of AADCO, "With the cost reductions,
improvements to gross margin and increased sales volume, we have lowered our
operating break even point substantially over the past year. Based on initial
reports we expect to achieve a first ever milestone for the company of break
even operating results in February 2007. Along with the improvements in
January sales and operating results, this projects well for the third quarter
and for the rollout of the company's previously announced intention to grow
rapidly through acquisitions in addition to organic growth."

    The TSX - Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    This press release includes forward-looking statements, including
statements relating to the Company's marketing strategy, future sales growth,
profitability, competitive position, and release of new products. The words
"plan", "expect", "believe", "intend", "anticipate", "forecast", "target",
"estimate" and similar expressions identify forward-looking statements.
Forward-looking statements are based on assumptions made by and information
currently available to the Company. Investors are cautioned that these
forward-looking statements are neither promises nor guarantees, and are
subject to risks and uncertainties that may cause future results to differ
materially from those expected. The Company does not undertake to review or
update these forward-looking statements.

    %SEDAR: 00009133E




For further information:

For further information: AADCO Automotive Inc., (905) 789-9313, Charles
Hodgkinson, CEO, chodgkinson@aadco.ca

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