Sanyo Automotive Parts & ABS Brakes File for Bankruptcy Protection

15 June 1999

Brake Headquarters USA, Inc. Announces That Two Subsidiaries Have Filed for
Protection Under the U.S. Bankruptcy Laws

PERTH AMBOY, N.J.--Decision to File for Chapter 11 Protection Not Expected
ToNegatively Impact Brake Headquarters Business.  Company Continues to
Consolidate Operations to Reduce Costs and Achieve Profitability

Brake Headquarters USA, Inc., announced today that two of its subsidiaries;
Sanyo Automotive Parts, Ltd.("Sanyo") and ABS Brakes, Inc. have filed for
protection, under Chapter 11 of the U.S. bankruptcy laws. The two
subsidiaries will have the opportunity, under the guidance of the courts,
to settle outstanding claims and reorganize their businesses. This decision
was due, in part, to continued losses incurred, especially by Sanyo, and to
protect the integrity of the parent Company's operations and those of its
subsidiary WAWD, which are not expected to be negatively affected as a
result of these filings.

Brake continues to significantly reduce both fixed costs, as well as
selling, general and administrative expenses, in order to consolidate
operations, and ultimately achieve profitability. As part of this on-going
effort, the Company is currently in the process of reducing its number of
operating facilities, from six (6) to two (2), while improving internal
operating efficiency, and allowing it to fully utilize its new, 106,000
square foot corporate facility and distribution center in Perth Amboy, New
Jersey.  Brake will now concentrate its efforts on continuing to internally
grow its higher margin product lines, as well as seek accretive acquisitions.

Separately, the Company was notified on May 25, 1999 that it has failed to
meet the requirements for continued listing on the O-T-C Bulletin Board by
its failure to file its Form 10-K for December 31, 1998. As a result,
shares of Brake Headquarters common stock are now quoted on It is the
intention of the Company to re-apply for listing on the O-T-C Bulletin
Board, following the completion of all listing requirements.

Founded in 1976, Brake Headquarters USA, Inc. is a wholesaler and
distributor of automotive brake system products and other component parts
for domestic and foreign cars and light trucks.