AutoCorp —Homeland Security Network, Inc. Begins Final Audits to Resume Being Fully-Reporting; Focusing on $22 Billion Global GPS Market; To Spin-off

FRISCO, Texas -- AutoCorp Equities, Inc. (OTC: ACOR), to be renamed Homeland Security Network, Inc.("HSNi") as of February 28, 2005, announced today that its auditors will begin the final audit of the company's financials for the year ending December 31, 2004. The company foresees no difficulties and expects to apply to the NASD for OTCBB re-listing toward the end of March, 2005. Shortly after regaining fully-reporting status and completing the two acquisitions, the company intends to apply to list its securities on a national exchange such as the American Stock Exchange, which it believes it may qualify for.
As previously announced in the Letter to Shareholders, AutoCorp management will discontinue the auto finance related activities of AutoCorp and spin off its subsidiaries to its shareholders. The Company notes that there are 110 million shares outstanding and 8,040,833 are in the float. The Company expects to announce the record date for spin off of the subsidiaries on or about March 15, 2005.

Management has been preparing the company for the last several months to adopt its new business model. As previously announced, this model will focus on the rapidly growing GPS industry related to the vehicle and asset tracking and locating businesses it is currently acquiring. Charles Norman, the company's CEO states, "GPS vehicle and container tracking is expected to be one of the fastest growing industries for years to come. Prior to now, GPS products and monthly service fees have been either too expensive or the software technology not user-friendly enough to be widely used by consumers and companies alike. However, we believe that our advanced SatTrac(TM) hardware and proprietary tracking and reporting software are going to enable us to service all markets with by far the lowest cost, best performing product available today, and in the foreseeable future." concludes Norman.
About the GPS Industry

According to recent forecasts, the global GPS market is expected to expand to a $22 billion industry by 2008. The Department of Homeland Security has been aggressively pursuing legislation, and spending has rapidly increased for finding dependable systems to protect borders and citizens. The company believes, that based on our country's commitment to security and industry revenue estimates, that the Company can generate sales of over 50,000 units and $17 million in gross revenue this year and grow to over 150,000 units and revenue exceeding $100 million by 2006.

Global Positioning Systems (GPS) is a Military/Homeland Security technology that utilizes satellite data to provide highly accurate location, navigation, and timing information. Originally used only by the military, GPS these days is finding its way into cars, boats, planes, construction equipment, movie-making gear, farm machinery, and even laptop computers. GPS will have a vital role in tracking cargo from the minute containers arrive at a port of entry, through their ultimate destination throughout North America with high reliability and low cost. Soon GPS will become almost as basic as the telephone.

About Auto Corp Equities, Inc.

AutoCorp Equities, Inc. (ACOR), a publicly-traded holding company, has entered into acquisition agreements with Rodwell Software Systems and ComTrak Solutions. These companies, brought to AutoCorp by some of its major shareholders, produce and market revolutionary new GPS tracking devices and software. AutoCorp will change its name to Homeland Security Network, Inc. (HSN) on or about February 28th, 2005 to reflect the direction of its new course of business. The company will capitalize on rapidly-emerging, largely under-served, GPS tracking markets. These markets, whose scope was dramatically accelerated by the increased need for Homeland Security, have a potential demand in excess of 100 million units-plus in the United States, Canada and Mexico over the next decade. HSN plans to lead the GPS tracking industry through the combined assets of its newly acquired companies' propriety software and market distribution capabilities. The re-structured company is also completing negotiations with a major international electronics manufacturer that will give it the ability to quickly and economically expand its sales efforts to all of its targeted markets. HSN expects to capture a dominant share of the GPS market with its ability to provide, in large quantities, the lowest cost tracking hardware, and to offer the most cost-effective data transmission fees (wireless airtime consumer costs) in the industry. Airtime costs, which largely inhibit the current GPS market's product sales and deployments, will be nearly 2000% lower for HSN than those of its nearest competitor for comparable data transmissions. The company's GPS products will incorporate state-of-the-art map tracking and trailing, geo-fencing alerts for designated parameter infringements, and the ability to uniquely control all vehicle functions from its customer's web-enabled mobile phones or personal computers, via the company's proprietary Internet website system software.