TAMG Transnational Group Inc (PK)

Transnational Automotive Group, Inc. (TAUG; http://ww.transauto-group.com/cms2) (OTCBB:TAMG), a global leader in transportation services and sustainable energy for the developing world, today announced that it has achieved several key milestones in fiscal first-quarter 2008 in its operations within the nation of Cameroon. Revenue for the quarter reached $1.585 million, nearly doubling the $862,000 the company generated for the entire 2007 fiscal year. TAUG is on course for more than $6 million in annual revenue for FY 2008, without taking into account additional potential revenue from anticipated increased ridership and additional planned bus routes. �We are extremely pleased with the company�s progress in the first quarter of fiscal-year 2008,� said Seid Sadat, chief financial officer for TAUG. �The strong results are a reflection of our solid execution and ongoing focus on operational excellence. Our revenue results for the quarter were at the peak of our expectations and represent a terrific start to the fiscal year.� Sadat added that revenue growth has been sharp in both of TAUG�s primary operating divisions: LeBus, the urban transportation system; and LeCar, the coach service that runs between Cameroon�s major cities, including its capital city, Yaound�, and the leading business center, Douala. �Our inter-city bus operations experienced a significant increase in ridership, which helped fuel our revenue growth,� said Sadat. �We anticipate accelerated revenue growth during the second quarter from the introduction of three new city bus lines employing 30 new buses, supported by an additional 200 service and maintenance personnel.� TAUG achieved an additional significant milestone in its progress toward profitability. The quarter ended May 31, 2007 is the first quarter in which the company realized a gross profit. Gross profit from operations for the quarter reached $407,000, or approximately 26 percent of net revenue. The increase in gross profits resulted in a significantly smaller loss from operations compared with the previous quarter. �We are encouraged by our ability to achieve a significant increase in our gross profit over the previous quarter,� said Sadat. �This further validates the financial viability of our business model.� �Our dual commitment to cost containment and revenue growth is driving TAUG�s momentum and progress,� said Lal Karsanbhai, president of TAUG�s African operations. �As we continue to realize increasing economies of scale through the expansion of our fleet and bus lines, our margins will continue to improve significantly. We have made considerable progress in containing our cost structure and are actively working on building the necessary infrastructure that will most economically manage the expansion of our operations.� In June 2007, TAUG was awarded an exclusive agreement to provide urban mass transportation services in Cameroon�s urban centers. �TAUG�s rapid financial progress, combined with the tremendous rider adoption and public enthusiasm for our LeBus and LeCar divisions, are powerful evidence of the reality that creating a public good through key transportation infrastructure can help drive operational success,� said Karsanbhai. �We anticipate many such achievements and successes as our partnership with the Government of Cameroon evolves.� About Transnational Automotive Group Transnational Automotive Group, Inc. (TAUG), a Nevada corporation that trades under the symbol (OTCBB:TAMG), is a transportation and sustainable energy company headquartered in Los Angeles, CA, with operating entities in Cameroon, and early-stage business development efforts in other Sub-Saharan African nations. TAUG�s vision is to become the leading transportation and sustainable energy company on the African continent, and to establish key infrastructure and workforce development that dramatically accelerates Africa�s economy and quality of life. TAUG is currently exploring the establishment of mass transit systems in leading African commercial and population centers, and preparing for expansion into additional industries, including manufacturing and marketing of sustainable bio-diesel fuels. This news release contains certain �Forward-Looking Statements� within the meaning of Section 21E of the United States Security Exchange Act of 1934. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company�s expectations are disclosed in the Company�s documents files from time to time with the Securities Exchange Commission.