AutoChina International Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2009

Q3 2009 Financial Highlights (1)
* Revenues from commercial vehicle sales and leasing business increased to $97.4 million from $11.4 million
* Total revenues of $242.0 million, an increase of 110.8% year-over-year (includes sales from auto dealership business)
* Net income attributable to shareholders of $7.0 million, an increase of 129.8% year-over-year
* Adjusted EBITDA of $12.4 million, an increase of 118% year-over-year

2009 Nine Month Financial Highlights (1)
* Revenues from commercial vehicle sales and leasing business increased to $168.3 million from $33.1 million
* Total revenues of $565.2 million, an increase of 70.1% year-over-year
* Net income attributable to shareholders of $12.5 million, an increase of 104.3% year-over-year
* Adjusted EBITDA of $25.3 million, an increase of 95.8% year-over-year

Operational Highlights
* Total number of commercial vehicle sales and leasing branches increased from 103 at December 31, 2008 to 150 at September 30, 2009
* 2,531 vehicles were financed in the third quarter of 2009, compared to 291 in the prior year period and 1,535 vehicles in the second quarter of 2009
* Company expects to close definitive agreement to sell automotive dealership business for approximately $68.9 million by end of 2009

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, reported financial results for its third quarter and nine months ended September 30, 2009.

(1) The financial results through September 30, 2009 include those of the automotive dealership business, which is in the process of being sold. Pro forma statements of income for the nine months ended September 30, 2009 and the year ended December 31, 2008 and a pro forma balance sheet as of September 30, 2009, to present the pending sale of the automotive dealership business segment as a discontinued operation, are presented below. In addition, the financial results prior to April 9, 2009 reflect those of the Company’s operating subsidiary, AutoChina Group, Inc. (“ACG”) on a stand-alone basis, without adjustment, prior to its acquisition by Spring Creek Acquisition Corp. on April 9, 2009.

2009 Third Quarter Financial Review

The Company reported revenues for the 2009 third quarter of $242.0 million, up 110.8% year-over-year from $114.8 million in the third quarter of 2008. The Company’s revenues by category were as follows:
* $128.6 million, or 53.1%, related to new automobiles;
* $97.4 million, or 40.3%, related to commercial vehicles;
* $11.4 million, or 4.7%, related to parts and service; and
* $4.6 million, or 1.9%, related to finance and insurance, attributable primarily to the commercial vehicle business

The Company’s commercial vehicle sales and leasing business recorded 2,531 vehicle financing agreements and sales in the third quarter of 2009, compared to 291 in the third quarter of 2008 and 1,535 in the second quarter of 2009. The Company did not realize any losses on any lease-to-own loans on its commercial vehicles during the first nine months of 2009. The increase in commercial vehicle sales was in part due to the effects of economic stimulus measures implemented by the Chinese government in the first quarter and strengthening demand for commercial vehicles in the third quarter.

Gross margin increased to 7.4% for the three months ended September 30, 2009, from 7.0% for the prior fiscal year period, and from 6.2% in the second quarter of 2009. The Company expects continued improvement in margin due to the increased contribution to revenues from the commercial vehicle sales and leasing business, which has higher margins than the dealership business.

Net income attributable to shareholders for the third quarter of 2009 increased to $7.0 million, or $0.60 per diluted share based on 11.7 million weighted average diluted shares outstanding, compared to $3.0 million, or $0.39 per diluted share based on 7.7 million weighted average diluted shares outstanding in the third quarter of 2008.

Adjusted EBITDA for the quarter ended September 30, 2009 increased to $12.4 million, from $5.7 million in the prior year quarter. A table reconciling Adjusted EBITDA to net income can be found at the end of this press release.

Nine Months Ended September 30, 2009 Financial Review

For the nine months ended September 30, 2009, revenues increased 70.1% to $565.2 million, from $332.2 million in the comparable prior year period. The Company’s revenues by sales category were as follows:
* $353.6 million, or 62.6% of revenues, related to new automobiles;
* $168.3 million, or 29.8%, related to commercial vehicles;
* $35.5 million, or 6.3%, related to parts and service; and
* $7.8 million, or 1.3%, related to finance and insurance.

Gross margin increased to 6.7% from 6.1% in the prior year period, which reflected the change in the revenue mix.

Net income attributable to shareholders for the nine months ended September 30, 2009 was $12.5 million, or $1.25 per diluted share, based on 10.0 million weighted average diluted shares outstanding, compared to $6.1 million, or $1.03 per diluted share based on 7.7 million weighted average diluted shares outstanding in the prior year period.

Adjusted EBITDA for the nine months ended September 30, 2009 increased to $25.3 million from $12.9 million in the prior year period. A table reconciling Adjusted EBITDA to net income can be found at the end of this press release.