Auto Recycling eNewsletter

For immediate release - November 2006

Written and published by Mike Gibson and Ron Sturgeon, autosalvageconsultant.com, email to email Mike Gibson. To register for future free issues, visit http://www.autosalvageconsultant.com. Don’t forget to watch for our management articles monthly in Recyclers Power Source Magazine, or posted at our web site.

This Month’s News

CHICAGO, Oct. 5 /PRNewswire-FirstCall/

LKQ Corporation (Nasdaq: LKQX), the largest nationwide provider of recycled light vehicle OEM products and related services and the second largest nationwide provider of aftermarket collision replacement products and refurbished wheels, will release its third quarter 2006 financial earnings results on Thursday, October 26, 2006 before 7:00 a.m. Eastern Time. To discuss the earnings results, the Company will host an audio webcast that same morning at 10:30 a.m. Eastern Time (9:30 a.m. Central Time) on Thursday, October 26, 2006. The webcast can be accessed via the Company's website at

http://www.lkqcorp.com in the Investor Relations section. An online replay of the webcast will be available on the Company's website approximately two hours after the live presentation and will remain on the site until November 10, 2006.

AADCO Announces Agreement to Purchase Dominion Auto Recycling Inc.

AADCO Automotive Inc. (AA: TSX - Venture Exchange) BRAMPTON, ON, Sept. 22 /CNW/

AADCO Automotive Inc. (the "Company"), the parent company of AADCO Vehicle Disposal Services Inc, a leading supplier of quality (LKQ) used auto parts, announces that it has entered into a letter of intent providing for the purchase of Jorama Holdings Inc. of Stoney Creek Ontario. Jorama Holdings Inc. owns and operates Dominion Auto Recycling Inc., which has been a leading provider in the Golden Horseshoe Area for over 60 years with recycled auto parts and rebuildable vehicles. The purchase price will be comprised of cash, vendor-take-back financing and stock. The transaction is expected to close on or about November 15, 2006, and will be subject to regulatory approval. Mr. Benjy Katz, the owner of Jorama Holdings and the operator of Dominion Auto Recycling Inc., will continue to run that business as a wholly owned subsidiary of AADCO Automotive Inc. As Chief Operating Officer of yard operations for AADCO Automotive Inc., he will also oversee the operations at AADCO Vehicle Disposal Services Inc.

"The purchase of Dominion Auto Recycling Inc. is just the first step in AADCO's corporate strategy to become the dominant national provider of LKQ (used) and aftermarket parts serving the automotive repair industry. The combined companies will have approximately $15 million in annual revenue initially, be profitable, with positive cash flows further strengthened by effective use of historic tax losses," said Charles Hodgkinson, President and CEO of AADCO Automotive Inc.

Schnitzer Steel to pay $15.2 million to settle bribe case, Reuters, Mon Oct 16, 2006

Schnitzer Steel Industries Inc. (SCHN.O: Quote, Profile, Research) on Monday said it would pay a total of $15.2 million to settle allegations that it bribed officials in China and South Korea. The company in a statement said it would repay $7.7 million of profits and prejudgment interest and pay a penalty of $7.5 million. Its Korean subsidiary pled guilty to the Foreign Corrupt Practices Act, the company said. Schnitzer Steel said the U.S. government agreed to a deferred prosecution agreement, under which the authorities will not prosecute the company if it meets the conditions of the agreement for three years.

Auto Salvage Consultant Survey, October 22, 2006

Recently we sent out a survey to our newsletter subscribers and received a terrific response of 8.57%. We want to thank those of you who participated, the survey was very informative and will help us tailor our articles and services towards your needs are interest. The questions and responses are as follows:

How many years has your company been in business? 60% answered more than 20 years.

What type of yard management system do you use? 53.3% answered Hollander and 33.3% answered Pinnacle.

What type of pay do most of your staff members receive? 73.3% said Hourly/Salary and 26.7% said performance pay.

What is your position in your business? 60% said Owner or President and 20% said Manager.

How many people does the business employ? 46.7% said 6-10, and 20% said 4-5.

What type of vehicle do you dismantle? 86.7% said all makes and models of cars, trucks, vans and SUV's.

What is you average monthly sales volume from all sources? 53% answered under $80,000.

Do you use a bid pad to purchase vehicles? 60% said No, 40% said Yes.

Do you calculate and track projected sales when bidding on vehicles? 60% said Yes, 40% said No.

Is the business currently a member of a User Group? 73% said No.

If your company is not currently a member of a User Group are you interested in joining one? 73% said Yes.

Has an Industry Consultant ever performed an Operational Review of your yard? 67% said No.

Is your company interested in having an Industry Consultant visit your yard and conduct an Operational Review? 65% said Yes.

Are you interested in attending a seminar on "How to properly prepare an Annual Financial/Operational Plan or Business Plan for a yard"? 85% said Yes.

How’s Business?

“Success is getting what you want; happiness is wanting what you get.” Dale Carnegie