Motorcar Parts & Accessories Settles Class Action Lawsuit

    TORRANCE, Calif.--Sept. 25, 2001--Motorcar Parts & Accessories, Inc. (ticker symbol:MPAA) today announced that it had settled the class action lawsuit and related litigation that had been filed against the Company in the United States District Court, Central District of California.
    The class action lawsuit alleged that, over a three year period, the Company misstated earnings in violation of securities laws. Under the terms of the settlement agreement, the class action plaintiffs will receive $7.5 million. Of this amount, $6 million will be paid by the Company's directors and officers insurance carrier, and the balance will be paid by the Company. All parties have exchanged releases in connection with this settlement.
    To finance the Company's portion of the settlement plan, the Company has issued 1.5 million shares of common stock to Mel Marks, the Company's founder and a board member, at a purchase price of $1.00 per share.
    The Company is a leading remanufacturer of replacement alternators and starters for imported and domestic cars and light trucks in the United States and Canada. The Company's full line of alternators and starters is remanufactured for vehicles imported from Japan, Germany, Sweden, England, France, Italy and Korea and, more recently, for domestic vehicles.