Shelby Files Federal Court Infringement Action Against Wilhelm Motor Works

LOS ANGELES, Dec. 21, 2005 -- Carroll Shelby International, Inc.'s , wholly owned subsidiary Carroll Shelby Licensing Inc. (CSL) announced today that it has filed an action in the Central District of California, United States Federal Court, seeking preliminary injunction and damages against Wilhelm Motor Works (WMW) for the intentional sale by WMW of unlicensed and unapproved Shelby GT-350C "Continuation" vehicles and products. Carroll Shelby and his licensing company CSL have been left with no alternative other than to seek assistance of the federal courts in stopping this deliberate infringement of Shelby's trademarks.

This action by Shelby is necessary as a result of WMW's breach of a recently executed license between the parties which was terminated in October 2005 based upon willful, deliberate and repeated contractual violations, including the offering for sale (without CSL's knowledge or consent) of previously built "knock-offs" as legitimate and approved Shelby GT-350C "Continuation" vehicles. To protect the Shelby brand and enforce the contract, CSL exercised its right to immediately terminate the license agreement with WMW.

WMW continues to willfully infringe upon Shelby's trademarks by continuing to offer unapproved and unlicensed vehicles and products for sale through online auction websites. This conduct combined with WMW's threat to issue a press release which, in Shelby's opinion, would be misleading as to the true nature of the dispute, has left Shelby with no alternative but to make this matter public through the filing of the federal court action and issuance of this press release.

About Carroll Shelby International, Inc.

Carroll Shelby International, Inc. is the parent company of Shelby Automobiles and Carroll Shelby Licensing. www.carrollshelbyinternational.com

Shelby Automobiles Inc. is manufacturing high performance Shelby vehicles under the guidance of the legendary Carroll Shelby and will be involved in prototype manufacturing, design and engineering projects; and plans to increase production and availability of these Shelby products through an expanded dealer network and direct sales under a license agreement with Carroll Shelby Licensing Inc. For more information, call (702) 942-7325 or visit the company's web site at www.shelbyautos.com.

Carroll Shelby Licensing Inc., founded in 1988, is the exclusive holder of automotive manufacturer and entrepreneur Carroll Shelby's trademarks and vehicle design rights, which include some of the world's most famous muscle cars and high-performance vehicles, including the car that brought home to the U.S. it's first and only FIA World Manufacturers Championship in 1965, the famous Shelby Cobra Daytona Coupe. It also holds trademark rights for Shelby-branded apparel, accessories and collectibles. For additional information about the company or licensing opportunities, call (310) 914-1843, or fax (310) 914-1853 or write to Carroll Shelby Licensing, Inc., 11150 West Olympic Boulevard, Suite 1050, Los Angeles, CA 90064 or visit www.carrollshelby.com.