Cragar Industries Enters Licensing Arrangement With Quattro Brands LLC

PHOENIX, May 23, 2003 -- Cragar Industries, Inc., (BULLETIN BOARD: CRGR) -- today announced that it entered a licensing arrangement with Quattro Brands, a Minnesota-based LLC. Quattro Brands will introduce a new line of CRAGAR-branded automotive appearance products including a brake dust inhibitor, a total wheel cleaner, a tire-black treatment, a spray and shine detailer and a glass protectant. Additional specialty chemical products are expected to be introduced in the future. Quattro Brands' management team possesses significant retail, e-commerce, and direct response marketing experience and will initially introduce the products via the direct response channel. Thus the new CRAGAR-branded products will be available in July through www.cragar.com.

Commenting on the new brand extension partnership, Dr. Michael L. Hartzmark, Chairman and Chief Executive Officer of Cragar Industries, stated, "The positive performance of our wheel licensing strategy in the year 2002, along with this new brand extension program demonstrates that the CRAGAR brand provides an excellent platform on which to build a significant position in the licensing industry. The management of Quattro Brands will focus their years of experience in manufacturing and marketing on developing a group of specialty chemicals under the CRAGAR banner. Their success will be our success, and their exposure will benefit themselves, as well as our other licensees."

On announcing their agreement at a recent shareholders meeting, Bob Wieden, President and Chief Marketing Officer of Quattro Brands remarked, "We are very proud to work with Cragar on building a car care line of specialty chemicals that reinforces their heritage of quality and performance. Our cutting edge product development coupled with the strength of the CRAGAR brand will enable us to attract a large audience of car enthusiasts through multiple distribution channels. We are confident that our industry expertise will facilitate the extension of CRAGAR-branded products to the mass retailer marketplace, thus providing a powerful opportunity to grow per store sales across the category into the future."

Headquartered in Phoenix, Arizona, Cragar Industries, Inc. was an international designer, producer, and seller of custom wheels and wheel accessories for cars, trucks, vans, sport utility vehicles, racing vehicles, and motorcycles. The Company is now a licensor of the CRAGAR(R), TRU=SPOKE(R), CRAGAR S/S(R) and STREET PRO(R) brand names and receives royalties through licensing alliances with companies that manufacture, sell and distribute various types of licensed wheels, wheel related products, toys and other automotive products. The Company is developing and implementing a marketing strategy to broaden the use of the CRAGAR brand name and intellectual property owned by the company. The Company is also an investor in Wrenchead, Inc.

Quattro Brands, LLC is a product development and distribution company located in Bloomington, Minnesota formed to manufacture and market specialty chemicals under the CRAGAR brand.

This release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including, among others, statements regarding the transaction with Quattro Brands LLC, as well as Cragar's intent to implement its business strategy regarding the CRAGAR brand name. Forward- looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Please refer to the Risk Factors in the Company's filings with the Securities and Exchange Commission, which identify certain important factors that could cause actual results to differ materially from those contained in our forward-looking statements. These factors include, but are not limited to, dependence on royalty income from licensees, dependence on external financing, market conditions, as well as general economic conditions. There is no assurance that Quattro Brands LLC will be able to successfully develop licensing programs, which would have a material adverse effect on the royalties Cragar anticipates from the licensing arrangements. There is no assurance that Cragar will be able to successfully develop additional licensing arrangements, which would have a material adverse effect on the royalties Cragar anticipates from the licensing program. There is no assurance that the Company's brand extension strategy will be implemented, and if so, whether it will be successful.