Harwood Feffer LLP is investigating claims on behalf of purchasers of the common stock of AutoChina International Limited (“AutoChina" or the "Company") (NASDAQ: AUTC), concerning whether the Company and certain of its officers and directors have violated federal securities laws.

The investigation is connected to AutoChina’s announcement on June 30, 2011 that the Securities and Exchange Commission (“SEC”) has commenced a non-public investigation into its accounting. AutoChina announced that it expects to restate its previously issued financial statements for the year ended December 31, 2009, and subsequent periods to recognize a derivative liability relating to the Earn-out Share Provision (“Earn-out”), which was part of its initial business combination in 2009.

With respect to the Earn-out shares, AutoChina’s original accounting treatment recorded the Earn-out shares, upon issuance, as an adjustment to the par value of ordinary shares and additional paid-in capital and included such shares in the calculation of earnings per share from the date of issuance. The SEC has asserted that the Earn-out should be treated as a derivative financial instrument, and as a result, a liability should have been initially recorded at its fair value at the time of the initial business combination.

In addition, during AutoChina’s 2010 year-end process, the Company identified a material weakness in its internal control over financial reporting as of December 31, 2010, due to a lack of requisite internal U.S. GAAP experience.

Further, AutoChina has announced that it expects that it will not file its Annual Report on Form 20-F for the year ended December 31, 2010, on time and will file a Form 12b-25 with the SEC for an extension.

You may contact the Harwood Feffer LLP website (http://www.hfesq.com) or James G. Flynn, directly, at jflynn@hfesq.com to ask any questions you may have in that regard.

The Complaint alleges violations of the federal securities laws against AutoChina and its officers and directors for issuing materially false and misleading financial statements to investors.

Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.

Attorney Advertising. © 2011 Harwood Feffer LLP. The law firm responsible for this advertisement is Harwood Feffer LLP (www.hfesq.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter.

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