Universal Automotive Industries, Inc. Extends Term of Warrants

CHICAGO, July 31 -- Universal Automotive Industries, Inc. , is pleased to announce that on July 28, 2003 it amended its Warrant Agreement dated December 22, 1994, as amended, extending the Exercise Deadline to the earlier of January 31, 2004 or the business day immediately preceding the Call Date, as defined in the Warrant Agreement. After consulting with its investment bankers, the Company has decided to amend the terms of its warrants to afford warrant holders an additional four and one-half months to exercise their warrants. This will extend the expiration date from September 15, 2003 to January 31, 2004. In addition, the exercise price of the warrants of $.50 was also extended to January 31, 2004. The Company also reduced the price of certain non-public warrants totaling 785,000 shares to $.50 per share until January 31, 2004. Any cash received by the Company in connection with the exercise of warrants will be used for general working capital purposes.

The Company is in the process of filing a sticker supplement to its prospectus for the shares underlying the warrants with the Securities and Exchange Commission to reflect the extension of the exercise deadline.

The Company reminds all warrantholders that when exercising their warrants, warrant holders must surrender their warrant certificate on or prior to the expiration date at the office of the warrant agent, which is LaSalle Bank, N.A., Corporate Trust Operations, 135 S. LaSalle Street, Suite 1960, Chicago, IL 60603, Attention: Joseph Pellicore, with the subscription form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by payment of the full exercise price (by certified or bank check payable to Universal Automotive Industries, Inc.) for the number of shares with respect to which the warrants are being exercised. No fractional shares of stock will be issued. Warrantholders may call Mr. Pellicore at LaSalle Bank, N.A. at 312-904-2584 for further information.

About Universal Automotive Industries

Universal Automotive Industries, Inc. specializes in the manufacture and distribution of brake rotors, drums, disc brake pads, relined brake shoes, non-asbestos friction lining and a complete line of hydraulic parts. The Company's brake part products are sold under the trademark "UBP - Universal Brake Parts," and "Ultimate" in the United States and Canada.

For further information, contact the Company c/o Robert W. Zimmer, CFO (708-293-4050).

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