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Letter to the Editor

Parts.com Settles More Than $859,000 in Debt

SANFORD, Fla. -- Parts.com, Inc. has announced that more than $859,000 in vendor debt has been settled in full and the company has received extensions of notes payable from its two largest investors through April 30, 2002 and December 31, 2002. Parts.com has also experienced an increase in its TradeMotion Storefront Product through direct sales and resellers.

"Parts.com continues to eliminate and address our outstanding debt obligations which have been an ongoing concern for sometime," stated Shawn D. Lucas, President and CEO of Parts.com. "This debt included the settlement of significant vendor payables at an average of approximately eleven and half cents on the dollar; several lawsuits and several default judgments. Parts.com has also successfully negotiated with its largest investor an extension of his note payable until December 31, 2002. Parts.com's second largest investor continues to extend his notes payables while he awaits the outcome of Parts.com's negotiations and obligations to the Internal Revenue Service," concluded Mr. Lucas.

Parts.com has reached a fixed monthly operating cost of approximately $50,000, while increasing revenues through direct sales and a significant increase in resellers that are bundling the TradeMotion products in their offering. Because of the settlements, Parts.com believes it may book an extraordinary gain for 1st quarter 2002 in excess of $660,000.00. Parts.com currently has 4,999,999 common shares issued and outstanding.

"Parts.com has witnessed first hand the peaks and valleys of being a dot com," stated Mr. Lucas. "We have learned that regardless of your URL; how great your software is; what OE Manufacturers' endorsements you may have received; and which Investment Banks are supporting you financially, if you don't increase parts sales for dealers, you won't increase your own software sales. The OE Manufacturers want to sell more OEM parts, and our dealers are selling up to $80,000 a month each in OEM parts on-line. Parts.com's dealers are referring more business to us than ever before. Why? Because results speak louder than any marketing piece we could ever put together."

Parts.com is securing some additional financing to address the remaining outstanding vendor payables of approximately $170,000 and Internal Revenue Service 941 Tax obligations of $235,000 excluding interest and penalties.

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