Universal Announces an Agreement in Principle to Acquire California Drum & Rotor

    ALSIP, Ill., Jan. 29 -- Universal Automotive Industries, Inc. is pleased to
announce that it has reached an agreement in principle to purchase the
principal operations of California Drum and Rotor, a division of Y-3 Holding,
Inc of Carson, California.  Universal's purchase of these operations is
subject to entering into a definitive purchase agreement with Y-3 Holdings,
Inc.
    Established in 1992, California Drum and Rotor distributes brake drum and
rotors to the North American Automotive Aftermarket.  California Drum & Rotor
has established a strong relationship with: The Aftermarket Auto Parts
Alliance, a leading national program distribution group and O'Reilly's Auto
Parts, Inc., a specialty retailer of automotive parts with over 1,000
locations.  Universal expects the transaction to close in early February,
subject to customary closing contingencies.  Funding for the transaction will
be provided through Universal's existing credit facility and other funding
sources.  California Drum and Rotor revenues for the year ending December 31,
2002 were approximately twelve million dollars ($12,000,000).
    The primary assets Universal will purchase include inventory, accounts
receivable, trademarks and the ongoing customer relationships.  Universal's
intention is to continue marketing under the California Drum and Rotor trade
name.  Universal is obtaining for a fee, from California Drum and Rotor, the
exclusive licensing rights to distribute a line of patented, high performance
brake rotors.  Universal believes that this new line of high performance brake
rotors will be widely accepted due to its patented design features, enhanced
performance functionality and relatively low cost.
    Arvin Scott, President & CEO of Universal, commented, "We are excited
about the prospect of expanding our business through the acquisition of
California Drum and Rotor.  Our immediate goal is to provide a seamless
transition for the customers.  We are pleased that Mrs. Judy Atkinson,
California Drum and Rotor's President, will join Universal in the capacity as
National Sales Manager for the California Drum and Rotor division.  Judy's
continued involvement with the company will ensure a smooth Customer
transition and provide the leadership for the continued growth of California
Drum and Rotor."
    Robert W. Zimmer, Chief Financial Officer of Universal, states, "The
addition of California Drum and Rotor will bring accretive earnings to the
Company.  The ability to offer California Drum and Rotor's customers not only
drums and rotors but also friction and hydraulic products further our goal of
being the premier brake parts supplier to the automotive aftermarket.  Our
current infrastructure is well positioned to service their customers with
minimal increases in fixed overhead.  In addition, with our Midwest and West
Coast distribution locations we are in a strong position to enhance service
levels to their existing customers."
    Universal Automotive Industries, Inc. is a manufacturer and distributor of
brake rotors, drums, disc brake pads, relined brake shoes, wheel & master
cylinders and brake hoses for the automotive aftermarket.
    This press release contains forward looking statements which are subject
to changing competitive and regulatory conditions, risks and uncertainties,
including but not limited to the risk that the transaction may not close
should the Seller fail to obtain the necessary consent to the sale from its
lender.  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.
    For further information, contact the Company's Chief Financial Officer,
Robert W. Zimmer (708-296-4050, ext. 227).