Mr. Samuel Cochrane reports

AUTOCANADA ADVANCES U.S. EXIT STRATEGY WITH SALE OF HYUANDAI OF LINCOLNWOOD

AutoCanada Inc. has completed the sale of Hyundai of Lincolnwood, in Lincolnwood, Ill. This dealership is part of the U.S. dealerships reclassified as discontinued operations at year-end 2024.

All dollar amounts are in Canadian dollars.

AutoCanada received approximately $3.3-million in cash for goodwill and fixed assets, excluding inventory and net working capital. Net proceeds will be directed toward reducing the outstanding balance of the company's revolving credit facility. In the 12 months ended Dec. 31, 2025, Kia of Lincolnwood generated sales of approximately $47.7-million (2024: $52.3-million) and incurred a net loss of $3.4-million (2024: net loss of $4.8-million).

The sale of Hyundai Lincolnwood represents further advancement in the company's strategy to divest its U.S. operations segment, enhance overall profitability and lower leverage. Following the classification of the U.S. segment as discontinued operations at the end of 2024, the company has realized approximately $65.8-million in gross proceeds, net of working capital, from the divestiture of U.S. assets. The company continues to expect proceeds from the sale of all its U.S. dealerships to be at the upper end of its previously disclosed $115-million to $130-million range. The U.S. dealership portfolio generated a net loss from discontinued operations of $103.4-million in 2024.

About AutoCanada Inc.

AutoCanada's Canadian segment, which is classified as continuing operations, consists of 64 franchised dealerships across Canada, representing 23 automotive brands in eight provinces. AutoCanada currently sells Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru and Volkswagen vehicles. In 2025, its Canadian dealerships sold approximately 71,000 new and used retail vehicles.

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