According to the Automotive Aftermarket Industry Association’s, or AAIA’s, 2006/2007 Aftermarket Factbook, the United States automotive aftermarket industry is projected to be $204 billion in 2006.

Internet use and online commerce continue to grow worldwide. According to a September 2005 research report, US eCommerce: 2005 to 2010 issued by Forrester Research, online purchases by U.S. consumers are expected to grow from approximately $172 billion in 2005 to approximately $329 billion by 2010, representing a 13.9% compound annual growth rate. According to Nielsen/NetRatings, broadband use at home has surpassed dial-up connectivity in the U.S., reaching 72% of residential Internet users in May 2006. In addition, the percentage of U.S. households shopping online is projected to grow from 39% in 2005 to 48% in 2010, according to Forrester Research.

As a percentage of overall retail sales, e-commerce sales today remain relatively small, having grown from 0.9% in the second quarter of 2000 to 2.3% in the second quarter of 2005 according to the U.S. Department of Commerce. However, e-commerce growth continues to increase at a much faster rate than overall retail sales growth.

The U.S. Department of Commerce recently reported that online retail sales increased from $27.6 billion in 2000 to $87.8 billion in 2005, representing a 26.1% compound annual growth rate, compared to 4.5% for the overall retail market. According to Forrester Research, e-commerce sales are expected to represent a 13% share of total retail sales by 2010 as Internet and e-commerce growth trends continue to drive a shift from traditional sales channels to online sales channels.

The body parts category is primarily comprised of parts for the exterior of an automobile. The Company’s parts in this category are typically replacement parts for original body parts that have been damaged as a result of a collision or through general wear and tear. In addition, the Company sells an extensive line of mirror products, including its own private-label brand called Kool-Vue, which are marketed and sold as aftermarket replacement parts and as upgrades to existing parts. Body parts products are sold either primed or raw, which require additional steps such as priming and painting in order to create a finished product. The Company also provides the necessary components to install its products, such as mounting kits and strut assemblies.

The engine parts category is comprised of engine components and other mechanical and electrical parts, which are often referred to as hard parts. These parts serve as replacement parts for existing engine parts and are generally used by professionals and do-it-yourselfers for engine and mechanical maintenance and repair.

The accessories category generally consists of parts that enhance a non-essential functionality, increase comfort or improve the physical appearance of the automobile’s interior or exterior. The Company’s accessories are often used by the customers to make upgrades to the look and comfort of their automobiles.

The Company offers performance versions of many parts sold in each of the above categories. Performance parts generally consist of parts that enhance the performance of the automobile, upgrade existing functionality of a specific part or improve the physical appearance of the automobile.

The Company generally provides, at no cost to its customers, a warranty on all parts for a period of up to 90 days from the date that the part is received by the customer. The warranty covers the replacement of a defective part, and if a replacement part cannot be obtained, a full refund is issued to the original customer.

Cost of sales was $53.8 million for the nine months ended September 30, 2006 and $25.9 million for the nine months ended September 30, 2005, an increase of $27.9 million, or 107.8%.

Gross profit was $29.9 million in the nine months ended September 30, 2006 and $18.1 million in the nine months ended September 30, 2005, an increase of $11.8 million, or 65.1%.

General and administrative expenses were $7.1 million for the nine months ended September 30, 2006 and $5.6 million for the nine months ended September 30, 2005, an increase of $1.5 million, or 27.5%.