Wonder Tool to Move Operations to Canada

    STUART, Fla.--Dec. 28, 2001--Glas-Aire Industries Group Ltd. announced that it has acquired Wonder Tool Inc. ("Wonder Tool"), a wholly owned subsidiary of Cyclo Manufacturing Company ("Cyclo"), a privately held Colorado-based company.
    Wonder Tool manufactures and distributes a twin head orbital polisher known as the "Wonder Tool" for the automotive and aircraft industry and other associated products.
    William Ponsoldt, Chairman of the Board of Glas-Aire, said: "We are very pleased to have completed this acquisition after more than a year of discussions and negotiations. Wonder Tool operates in a niche market that we believe fits very well with our existing distribution system and which expands our existing product line. We believe that Wonder Tool's products will contribute significantly to both our top and bottom lines." Ponsoldt also said, "We plan to move the Wonder Tool operations to our facility in Canada, which should increase Wonder Tool's margins."
    Glas Aire issued 1,250,000 shares of its common stock to acquire Wonder Tool. The shares are restricted securities and as such are subject to trading restrictions under U.S. securities laws.
    Robert C. Johnson, President of Cyclo, said: "I am very optimistic about the future of the orbital polisher with Glas-Aire. Putting the orbital polisher into Glas-Aire's distribution system and moving the Wonder Tool operations to Canada should lead to increased sales and better operating results as volumes increase."
    Robert C. Johnson and Raymond Gherardini, also an officer of Cyclo, have joined the Glas-Aire Board of Directors following the acquisition of Wonder Tool.

    The statements contained in this press release which are not historical facts are forward-looking statements that involve certain risks and uncertainties, including, but not limited to, risks associated with the uncertainty of future financial results, additional financing requirements, the transfer of Wonder Tool's business from the U.S. to Canada, sales of Wonder Tool's products, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.