AQM Automotive Corporation Announces Going Private Transaction.

    BRAMPTON, Ontario--March 29, 2001--AQM AUTOMOTIVE CORPORATION (CDNX:AQV.)

    2001 Q1 Sales and Earnings Released

    AQM Automotive Corporation ("AQM") announced today that its board of directors has approved the terms of a letter agreement which contemplates a "going private transaction" to be completed by way of an amalgamation involving AQM and AQM Acquisition Corp., a corporation controlled by Leslie Leib, Gerry Kaminsky and Tim Nigh, senior officers and the control group of AQM (the "Management Group").
    Pursuant to the proposed transaction, holders of common shares of AQM (other than the Management Group) will receive $0.25 for each common share of AQM currently held. The transaction is subject to execution of a definitive agreement and is expected to be put to shareholders for consideration at AQM's annual and special meeting scheduled for Wednesday, May 23, 2001. In order for the transaction to proceed, it will need to be approved by a majority of the minority shareholders of AQM.
    The Board of Directors of the Corporation has appointed, from among its members, an independent committee (the "Special Committee") to consider the proposed transaction. The Special Committee, based upon its own independent investigations, will advise the Board of Directors whether, in the Special Committee's opinion, the proposed transaction is fair to the minority shareholders and in the best interests of AQM and whether or not it should be recommended to the shareholders of AQM.
    The Corporation has also agreed to retain Klein Valuation Services Inc. of Toronto, Ontario, to conduct an independent formal valuation of the Corporation.
    AQM Automotive Corporation also announced its consolidated financial and operating results for the first quarter of 2001, ended February 29, 2001. Reflecting reduced purchase levels by all major customers, sales dropped by 13% from the 1st quarter of 2000. Gross profit decreased by 7%, to $763,214. Net income for the quarter was $31,000 (0.3 cents per share), decreasing by 37% from the 1st quarter of 2000.

                                           First Quarter Ended
                                         29-Feb-00    28-Feb-01
---------------------------------------------------------------
Sales                                    3,338,687    3,829,169
Gross Profit                               763,214      827,647
Gross Profit Margin                          22.9%        21.6%
EBITDA                                     105,547      149,243
Net Income                                  31,000       48,867
EDITDA per share                         1.0 cents    1.4 cents
Net Income Per Share                     0.3 cents    0.5 cents

    Finally, the Company announced that the Annual and Special Meeting of Shareholders of the Company will be held at 3:00 p.m. on Wednesday May 23rd 2001, at the Company's offices on 50 Precidio Court, in Brampton, Ontario.

    The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

    This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, the securities in any jurisdiction.