Universal Automotive Industries, Inc. Receives Nasdaq Delisting Notice, Submits Appeal and Announces Substantial Proposed Equity Infusion

    ALSIP, Ill., July 3 Universal Automotive Industries, Inc.
, a manufacturer and distributor of brake parts for the
automotive aftermarket, today announced that on June 29, 2001 it received
notification from Nasdaq that the Company did not sustain compliance with
Nasdaq's $2,000,000 minimum net tangible assets requirement pursuant to Rule
4310(c)(2)(B).  As a result, Nasdaq intends to delist the Company's common
stock and convertible warrants effective July 9, 2001, subject to the appeal
process below.
    The Company has submitted an appeal with Nasdaq's Hearing Panel requesting
a hearing into this matter.  Once officially received by Nasdaq, the hearing
request will automatically defer the delisting until the Panel makes a ruling.
The Company will be presenting its business plan to the Hearing Panel and will
seek to put in place steps to avoid delisting prior to any delisting of its
shares of common stock and convertible warrants.  Included in this plan will
be presentation of the letter of intent executed on July 3, 2001 between the
Company and a US division of a major foreign corporation primarily engaged in
automotive OEM and aftermarket calling for the issuance of $2,800,000 of
Preferred Stock, convertible into 1,400,000 shares of common stock, subject to
certain anti-dilution adjustments.  The letter of intent calls for a closing
within 30 days of execution and is subject to completion of due diligence and
preparation of mutually satisfactory definitive documentation.

    This press release contains forward looking statements which involve
numerous risks and uncertainties.  The Company's actual results could differ
materially from those anticipated in such forward looking statements as a
result of certain factors, including those set forth in the Company's filings
with the Securities and Exchange Commission.