Prolong Super Lubricants Completes $1.125 Million Private Placement

    IRVINE, Calif.--Nov. 18, 2002--Prolong Super Lubricants, Inc., an operating subsidiary of Prolong International Corporation (AMEX:PRL), a consumer products holding company and manufacturer and marketer of patented consumer automotive, commercial/industrial and household products, today announced that it has raised $1.125 million in gross proceeds through the private placement of secured subordinated promissory notes and warrants to purchase common stock of Prolong International Corporation to a select group of accredited investors. The purpose of the financing was to raise additional funds to meet future growth and expansion plans.
    In connection with the financing, Prolong International Corporation issued five-year warrants to purchase up to an aggregate of 2,250,000 shares of its common stock. The notes, the warrants and the shares of common stock underlying the warrants have not been registered under the Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent an effective registration statement under the Act covering such notes, warrants or shares or a valid exemption from the registration requirements of the Act. The private placement described in this press release has been completed and nothing contained herein shall be deemed to be an offer of securities by the Company or Prolong International Corporation.
    Elton Alderman, Prolong's CEO stated, "With the completion of this financing, the Company now has additional working capital to better execute on its business plan. This last year has been a transition period for Prolong. We deleveraged our balance sheet by over $5.0 million and reduced significantly our selling and administrative expense, the combined effect of which has been to return the Company to profitability. Now, with the closing of this funding, we are in a much better position to achieve our expansion plans."
    Prolong International Corporation (AMEX:PRL), a consumer products holding company headquartered in Irvine, California, through its operating subsidiaries, manufactures, markets and distributes a complete line of patented lubricant and proprietary automotive, commercial/industrial and household products. The Company's products are marketed and sold under the brand name Prolong Super Lubricants(R) and are used in automotive, industrial and consumer applications. Prolong products are sold throughout the United States at major chain stores and auto retailers and in international markets. More information about Prolong International and its products can be obtained at http://www.prolong.com.
    Capital Asset Advisors, LLC acted as the exclusive placement agent to the Company and Prolong International Corporation for this private placement. Capital Asset Advisors is an Orange County, California based investment banking and financial advisory firm. The corporate finance department provides a broad array of services including private placement financing, merger and acquisition advice, financial restructuring and valuation consulting (http://www.caadvisors.com).

    Forward-Looking Statements

    Certain statements in this news release that relate to financial results, projections, future plans, events, or performance, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and involve significant risks and uncertainties, including, but not limited to, the following: competition, cost of components, product concentration and risk of declining selling prices. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These risks and uncertainties, and certain other related factors, are discussed in the Company's Form 10-K, Form 10-Q and other filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this release and the Company assumes no obligation to update such forward-looking statements.