Spectre Reports First Quarter Results

    VANCOUVER, British Columbia--May 16, 2002--Spectre Industries, Inc. (Pink Sheets:STND), announced today its results for the three months ended March 31, 2002.
    The Company's principal operating subsidiary is a manufacturers' representative in the North American automotive aftermarket. The Company's primary business activity is to develop a North American distribution network by concentrating on agency consolidation and e-commerce. In January 2002, the Company's European subsidiary, Auto Photo Kiosk, GmbH ("APK") placed the initial inventory of automated photo kiosks into the German market. Revenues are growing as more units are placed into the market.
    For the three-month period ended March 31, 2002, the Company reported $317,809 in revenues which were primarily commissions earned on the sale of automotive and heavy duty truck parts. This compares to revenues of $289,548 for the three months ending March 31, 2001. Comparatively, this marks an increase in revenue of $28,261 or approximately 10% over the same period.
    Net loss for the three-month period ending March 31, 2002 was $113,763 or $.01 per share. This compares to a net loss of $117,607 or $.01 per share, for the three months ending March 31, 2001. Cost of sales increased $68,123 due to start up costs associated with APK's production ramp up. These costs are projected to decrease as more units are placed into the market. Operating expenses decreased $45,970 or approximately 22% compared to the period ended March 31, 2001.
    During the three-month period ending March 31, 2002, the Company earned interest income of $548 and incurred interest expense of $1,676. For the same period in the prior year, the Company earned interest income of $7,681 and incurred interest expense of $4,678.
    "We are very pleased with the continued positive trend in growing our revenues and reducing our operating costs," said Ian Grant, Spectre's President and CEO. "Both Grant Automotive Group's (GAG) Canadian and United States' operations achieved their first quarter profit targets. The industry recovery is progressing and we expect to meet our profit targets for this fiscal year. GAG's profitable performance assists in offsetting the overall corporate expenses. Our European subsidiary is now in operation and has increased the number of operational units. We expect APK to be profitable in the third quarter."
    APK has the optimal strategy of placing cash generating kiosks in high traffic locations with the added ability to capitalize on the trend for digital transmission of personalized photographic imagery. The Company has begun to plan for the launch of Turbospark in the automotive aftermarket. Spectre's exclusive distribution agreement with DST/MacDonald of Valencia, California provides a strong partnership with two well-established aftermarket companies.
    On January 17, 2002, Spectre reported that it had cleared comments for its Form 10-SB Registration Statement with the United States Securities and Exchanges Commission. An application has been filed for Spectre with the National Association of Securities Dealers, for quotation on the NASD OTC Bulletin Board. The Company expects to be trading on the OTC.BB in the very near future.

    This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, APK's projected profitability in the third quarter.
    Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainty of financial estimates and projections, stock market conditions, unforeseen technical difficulties and the Company's ability to operate the services described. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
    Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the Company's annual report on Form 10-KSB for the 2001 fiscal year, the Company's quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.