Mr. Clutch USA to Raise $5 Million Through Direct Public Offering

    SCOTTSDALE, Ariz.--April 5, 2001--Mr. Clutch USA Inc., a nationwide licensor of clutch repair services, is conducting a Direct Public Offering (DPO) for $5 million, or 400,000 shares of its common stock at $12.50 per share.
    The DPO opened March 30 and is available to residents of foreign countries, plus all residents in states that have one or more Mr. Clutch licensed dealers including Arizona, Oregon, Washington, Nevada, Idaho, Colorado, New Mexico and Utah.
    The company's offering circular and information to buy the stock are online at www.mrclutchusa.com. Minimum stock purchase is 100 shares for $1,250. Funds raised from the offering will be used for working capital to expand the company's dealership program and for acquisition of small franchise companies across the country.
    Mr. Clutch will also be looking for major investors with experience in acquisitions, investment banking and/or public corporations to fill three seats on its board of directors.
    Investors with knowledge and expertise useful to the company are invited to submit a brief biography to stockoffer@mrclutchusa.com for consideration.
    George Earl, president and chief executive officer of Mr. Clutch USA says by using the DPO and offering stock via the Internet, the company is saving more than $700,000 in fees ordinarily paid to an investment banker to sell stock.
    "Instead of seeking large investments from a few wealthy individuals and venture capitalists, we are seeking small investments from a large base of hundreds of small investors," said Earl.
    "It's healthier for the company and those hundreds of small investors become mini-venture capitalists, who will attract thousands of others when it's time for our IPO."
    Mr. Clutch USA licenses its trademark name and logos to existing "mom and pop" auto repair shops for an annual licensee fee of $1,175 and weekly fee of $275.
    In exchange, the company provides Yellow Page ads and other local advertising, including a recently produced TV commercial featuring four-time winner of the Indianapolis 500, Al Unser Sr. The licensing arrangement lends the company's nationally known image to its dealers, so the small shops can compete with large franchised chains in the auto repair business.
    Currently, Mr. Clutch has 55 licensee service dealers in 19 major cities in 11 states. Over the next four years, the rapidly growing company plans to expand to as many as 1,300 service dealerships.
    Earl anticipates the Mr. Clutch USA stock will qualify for listing with the Pacific Stock Exchange upon completion of the offering. He also plans to list Mr. Clutch USA with the Nasdaq Small Cap Market when it qualifies, which should be after a regular Initial Public Offering (IPO) in the next 24 months.