MPA Beats Competition With Industry Product Quality Leadership Award

LOS ANGELES--Oct. 26, 2004--Motorcar Parts of America (MPA) (OTC:MPAA.PK) has been honored by Frost & Sullivan with the 2004 Product Quality Leadership Award, for the North American Automotive Starter and Alternator Aftermarket. Frost & Sullivan is a leading growth consulting firm. In their 2004 industry research, the firm recognized MPA among market participants that demonstrated quality leadership and superiority over their competitors.

"Frost & Sullivan believes that product quality leadership is an essential element to satisfying customers, increasing repeat buying behavior and assuring long-term market survival," said Jasmine Sachdeva, Frost & Sullivan's Automotive Aftermarket industry manager. "Motorcar Parts of America has demonstrated these leadership qualities in the remanufactured starter and alternator aftermarket."

MPA defeated 10 major competitors to earn the top quality leadership prize. The methodologies used for determining Award recipients were uniform, using interviews with all market participants, end-users and distributors, in addition to extensive secondary and technology research. Once MPA was nominated, they were submitted to the Strategic Review Committee for approval and awarding. The remaining nominees were then compared and ranked. Factors such as feasibility of product launch, likelihood of customer acceptance, acceptance rates, and estimated time to market were also taken into consideration. "Motorcar Parts of America's dedication to consistency in product quality has propelled the company to success in this industry," Sachdeva said.

Several major factors drew the attention of Frost & Sullivan analysts, including the direct analysis of millions of aftermarket starter and alternator cores that give MPA the rare opportunity to see which components and other factors commonly cause units to fail. With this hindsight, MPA's Quality Engineering Division develops solutions to extend the lifetime of each part. The Quality Engineering Division is responsible for a multitude of quality assurance tasks, including the integration of all learnt "knowledge" through advanced engineering techniques, which is then made available internally to all departments.

MPA uses "lean manufacturing," which reorganizes the manufacturing process to combine product families with similar configurations into dedicated, self-contained factory work "cells." "We've aligned our business strategy with our manufacturing strategy, to ensure the improvements we've already made with lean manufacturing will be here for the long-term," said MPA's CEO, Selwyn Joffe. Lean manufacturing replaced the more traditional assembly line approach, previously utilized, reducing direct labor costs and work in process. MPA's unique manufacturing system enables it to quickly respond to changing customer requirements.

To further secure quality leadership standards, MPA works closely with component suppliers to ensure that quality standards are continually improved. Frost & Sullivan found this "vital" to quality leadership because the quality of a remanufactured starter and alternator is "indicative of the sum of all its parts," Sachdeva said.

MPA also maintains QS-9000 Certification: a demanding, industry-wide quality control evaluation standard. It is one of the highest quality standards achievable for automotive parts suppliers, and is a requirement for supplying parts to many of the world's leading automobile manufacturers. To maintain QS-9000 Certification, MPA must pass rigorous inspections by external auditors every six months.

In what Frost & Sullivan considers a "fiercely competitive," mature global market, the Quality Leadership Award gives MPA tangible recognition that further solidifies its leadership. "We are honored to receive Frost & Sullivan's award," Joffe said. "At MPA, we don't focus on receiving recognition, although it's nice. Our goal is to provide our customers with the highest-grade parts to help minimize failure and reduce warranty claims."

The award was presented at Frost & Sullivan's "2004 Best Practices Award Banquet," on Oct. 20, 2004, at the Rancho Las Palmas Resort & Spa in Rancho Mirage, California.

About MPA

Motorcar Parts of America, Inc. (MPA) is a leading manufacturer of replacement alternators and starters for imported and domestic cars and light trucks in the United States and Canada. MPA has facilities in the United States in Torrance, Calif.; Nashville, Tenn.; and Charlotte, N.C., as well as overseas in Singapore and Malaysia. The company website is located at www.motorcarparts.com.

Disclosure Regarding Private Securities Litigation Reform Act of 1995:

This press release may contain certain forward-looking statements with respect to the future performance of the Company that involve risks and uncertainties. Various factors could cause actual results to differ materially from those projected in such statements. These factors include, but are not limited to: concentration of sales to certain customers, changes in the Company's relationship with any of its customers, including the increasing customer pressure for lower prices and more favorable payment terms, the potential for changes in consumer spending, increases in interest rates, changes in the financial condition of any of our major customers, consumer preferences and general economic conditions, increased competition in the automotive parts remanufacturing industry, unforeseen increases in operating costs and other factors discussed herein and in the Company's filings with the Securities and Exchange Commission.