AQM Announces 2000 Sales and Profits

    WOODBRIDGE, Ontario--AQM Automotive Corporation (CDNX:AQV.) today announced its consolidated financial and operating results for its fourth quarter of 2000 (September 1, 2000 to November 30, 2000) and for the year ended November 30, 2000.

    Sales for the year ended November 30th, 2000 were $16,752,615 up 22% from 1999. This increase was caused by an increase in the number of accounts serviced and an increase in unit sales of higher value products. Sales volumes for the 4th quarter increased by 25% to $4,335,046.

    Annual net income was $308,164 (2.8 cents per share), up from 1999's income of 0.9 cents. Net income for the 4th quarter of 2000 was a loss of $64,415 (0.6 cents per share). The quarterly and annual net income includes a pre-tax provision of $US 50,000 for possible assessments from the U.S. Treasury Department relating to anomalies in duty processing between 1989 and 1992.

                  Fourth Quarter Ended   Year Ended
                 30 Nov-00   30-Nov-99    30-Nov-00  30-Nov-99
---------------------------------------------------------------
Sales            4,335,046   3,463,775   16,752,615 13,719,447
Gross Profit     1,011,263     789,254    3,927,035  3,382,344
Gross Profit
 Margin              23.3%       22.8%        23.4%      24.7%
Net Income        (64,415)   (131,757)      308,164    118,031
Net Income Per
 Share         (0.5) cents (1.1) cents    2.4 cents  0.8 cents

    Commenting on the quarterly and annual results, Mr. Leslie Leib, Chairman of the Company, stated that he was pleased with the growth in sales for the year. The main challenge facing the Company will be to maintain these sales levels without further deterioration in profit margins.
    AQM Automotive Corporation is a publicly traded, Canadian based holding company whose shares are listed on the CDNX. G.K. Industries Ltd. (G.K.I.) is the operating component of the AQM group of companies, and one of the leading companies of its kind in North America. The Company procures, manufactures, packages and distributes automotive parts, including fuel filters, automatic transmission filter kits, breather elements and cabin air filters. Approximately 70% of annual sales are exported, primarily to the United States. Sales are across the spectrum of the automotive aftermarket industry, including national brand name filter companies, retailers, program distribution buying groups, traditional warehouse distributors and undercar specialty networks. As the total automotive market continues to consolidate, we are increasing our sales efforts to retail chains and large traditional distribution networks. Growing our market share of these segments is our goal.