McLaren Performance Technologies Consolidates Traction Business Unit

California-based Traction Business Relocated to Livonia, Mich. Headquarters

    LIVONIA, Mich., Feb. 13 McLaren Performance Technologies
announced that it has consolidated its Santa Barbara, Calif.-
based traction business unit and has transferred its patented Gerodisc(TM)
traction-control technology, as well as related research and development, to
the company's Livonia, Mich. headquarters.
    "The relocation of the McLaren traction business unit enhances our
effectiveness and efficiency by bringing the enterprise closer to McLaren
Performance Technologies' Detroit-based OEM customers and will help the
company further develop opportunities," said Steven Rossi, president and chief
executive officer of McLaren Performance Technologies.  "Now that Gerodisc(TM)
is part of our local product portfolio, it will further expand our
capabilities in the marketplace, especially in the Detroit area, and will
allow us to capture further synergies within McLaren Performance
Technologies."

    Enhanced Traction-Control Offering Meets Customers' Needs
    McLaren Performance Technologies' Gerodisc(TM), Gerodisc II and Twin Disc
traction-control systems provide customers with products for all types of
vehicle-drive configurations -- all-wheel-drive, four-wheel-drive, front-
wheel-drive and rear-wheel-drive.
    "To meet the growing needs of our customers, we are now better positioned
to pursue all the opportunities that result from the relocation of the
Gerodisc technology to our home market," said Wiley McCoy, chief operating
officer for McLaren Performance Technologies.  "McLaren Performance
Technologies will continue to be a strong force in the market by providing
valuable traction-control technology to our customers."
    McLaren Performance Technologies' Gerodisc(TM) and Gerodisc II systems,
which have similar designs and components, are hydro-mechanical limited slip
differentials that react to a difference in rotational speed between the
wheels of an axle, or the front and rear axles -- by engaging a pump which
applies force to a series of clutches which transfer traction to the wheel
with grip.  The Twin Disc system uses a separate pump and clutch pack for each
wheel.  It can automatically engage whenever there is a speed difference from
side to side or from axle to axle.  These technologies will also be targeted
at the aftermarket and performance markets.
    Currently licensed to various tier-one suppliers (New Venture Gear and the
Steyr Powertrain Division of Magna), the Gerodisc(TM) technology is a key
component of the Jeep Grand Cherokee Quadra-Trak II and Quadra-Drive transfer
case systems.  The Gerodisc II system is based on the axle technology
introduced in 1999 on the Jeep Grand Cherokee.  The Twin Disc technology will
be introduced on the all-wheel-drive version of the Pontiac Aztek and the
Buick Rendezvous.
    Livonia, Mich.-based McLaren Performance Technologies, a publicly traded
company, provides full-service design, development, fabrication, testing,
validation and certification of automotive powertrains and related components,
development and licensing of patented traction systems, as well as complete
vehicle development and prototyping capabilities.  First established as the
engine development company for Bruce McLaren Motor Racing, McLaren Performance
Technologies has been a recognized leader in the Detroit engineering community
for more than 30 years.
    McLaren Performance Technologies, which serves the automotive, racing,
aftermarket and marine industries, has four business units: McLaren Engines,
McLaren Traction, McLaren Vehicle Development and McLaren Manufacturing.
    More information about McLaren Performance Technologies can be found by
visiting the company's website at http://www.mclarenengines.com .
    This release contains forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the "safe harbor" created thereby.  These statements
include the plans and objectives of management for future operations,
including plans and objectives.  The forward-looking statements herein are
based on current expectations that involve judgments with respect to, among
other things, future economic, competitive, and market conditions and future
business decisions, all of which are difficult or impossible to predict
accurately and many of which are beyond control of the Company.  Although the
Company believes that the assumptions underlying the forward-looking
statements are reasonable, any one of the assumptions could be inaccurate and,
therefore, can be no assurance that the forward-looking statements included in
this release will prove to be accurate.