NowAuto Group, Inc. Announces Fiscal First Quarter Results

Charge-offs and defaults remained high as economic conditions continued tobe more difficult than expected. However, net Contract Receivables increase12% over the prior year. In spite of these adverse events, the Companyachieved a slight operating profit in the first quarter.

"The present condition of the sub-prime and below sub-prime auto markethas certainly impacted our industry and our company," said CEO Scott Miller."While our emphasis is always on collections, our challenge in the currentenvironment is to aggressively work with our customers to maintain activecontracts. In recent weeks we have re-contracted and redeemed a record numberof accounts in order to avoid charge-offs wherever possible. Increases instaple goods, especially fuel, have placed a strain on our customers. Ourcommitment to customers and shareholders alike is that NowAuto will dowhatever it can to maintain productive contracts without placing imprudentdemands on our customers," Miller said.

Due to recent State legislation concerning undocumented immigrants andpotential penalties upon businesses that employ them, the Company believesthere has been, and will continue to be in the foreseeable future, a reductionin the sub-prime and below sub-prime auto and credit customer base. While notaffecting NowAuto's work force, this reduced customer demographic has, and maycontinue to, adversely affected the Company's results.

"The higher sales season begins in a couple of months and we are makingall preparations for it by increasing inventory levels, emphasizing more fueleconomic vehicles, increasing our investment in vehicle conditioning andmaintenance, and creating innovative finance programs to fit our customers'budgets," said Faith Forbis, CFO.

"The company feels that is conditioning and maintaining our vehicles, bothbefore as well as after the sale is critical to reducing charge-offs," saidTino Valenzuela, COO. "We are excited to announce the opening of our newvehicle conditioning center that opens December 1, 2007. While this will serveour customers by providing lower cost vehicle maintenance and repair, weexpect this part of our business to be a profit center by the end of fiscal2008," stated Valenzuela.

"As previously announced, we have taken significant strides in identifyingan acquirer," stated Miller. "Within the last month we have been introduced toa number of candidates and have been performing due diligence and preliminarynegotiations with several. While it remains premature to announce anyspecifics, we expect to be in a position to make a public announcement incoming weeks. Consummation of a transaction however, if there indeed is one,will not likely occur until later in fiscal 2008. Our goal is to find thecandidate that offers to our shareholders the best prospects for the future,"Miller added.

About NowAuto Group, Inc.

NowAuto Group, Inc. operates three buy-here-pay-here used vehicledealerships in Arizona. The Company manages all of its installment financecontracts and purchases installment finance contracts from a select number ofother independent used vehicle dealerships. Through its subsidiary, NavicomGPS,Inc. the company markets GPS tracking devices, primarily to independent usedvehicle dealerships.

Note to Investors

This press release contains forward-looking information within the meaningof Section 27A of the Securities Act of 1933 and Section 21E of the SecuritiesAct of 1934, and is subject to the safe harbor created by those sections. Theforward-looking information is based upon current information and expectationsregarding NowAuto Group, Inc. These estimates and statements speak only as ofthe date on which they are made, are not guarantees of future performance andinvolve certain risks, uncertainties and assumptions that are difficult topredict. Therefore, actual outcomes and results could materially differ fromwhat is expressed, implied or forecasted in such forward-looking statements.

NowAuto Group, Inc. assumes no obligation to update the informationcontained in this press release. NowAuto Group, Inc.'s forward-lookingstatements in this press release and future results may be materially impactedby any number of factors, any or all of which could have a negative impact onsales, operating results, financial and budgetary constraints. NowAuto Group,Inc.'s future results may also be impacted by other risk factors listed fromtime to time in its SEC filings, including, but not limited to, the Company'sForm-QSBs and its Annual Report on Form 10-K. The statements made herein areindependent statements of NowAuto Group, Inc. The inclusion, if any, of anythird parties does not represent an endorsement of any NowAuto Group, Inc.products or services by any such third party.

For further information contact NowAuto Group, Inc. or visit the Company'sWeb site at .