[Brent Mills]

Hello to all,

This memo is mostly addressed to customers that have placed deposits on the new CSX4000 cars that are in production at the facilities in Cape Town however it sounds like the rumor mill also needs some updating on the issues as well.

I had hoped to update our customers on a more personel basis through the dealer network but could not delay any longer due to the mis-information flying about on the site.

Although we have run into production delays at the plant in Cape Town we have by no means shut down or slowed down on the process of getting up to full production. The bulk of the delays have been due to the demands of Shelby that the product is a true representation of our CSX4000 Series Cobra Component Vehicle. Shelby will not compromise the quality of their products and is making every effort possible to guarntee the units are built to our standards and quality.

Through past experience I know several of the skeptics out there will turn this into just another excuse by Shelby but this too will pass in short time.

I just returned after a ten day visit and inspection of the facilities and production in Cape Town and am pleased to report that we have 16 production units in process at this time and are in the process of installing two more units per week into filling the system.

Although our original schedule had called for the completion of the first twenty units by January 1, we have reduced that figure to six complete and twenty in process in order to insure the units are built to the above mentioned standards.

When we are in full production and producing ten units per month starting in March of 2004 we will have aprox. 35 units in production at the South African facility and six to eight completed units in transit at any given time.

I want to make sure to state that Carroll Shelby, SAI and CAV are totally dedicated to this project and that we are sorry for any delays in getting you your Cobra. I will be putting out a status report on my trip addressed to our independant dealers this coming Monday and they will of course forward it to each of you that has placed or plans to place an order for a 427 S/C Cobra.

FYI: CAV has several facilities to include a 25,000 sq. ft composite plant, a 18,000 sq. ft automotive assembly plant, 14,000 sq. ft marine assembly plant as well as several remote offices throughout Cape Town, South Africa with aproximately 110 employees in total. Superformance is located in Port Elizebeth, Soth Africa, aprox 500 miles from Cape Town so please don't take a Taxi if you wish to see both facilities in the same day.

Thank you,

R Brent Fenimore
Shelby American