Motorcar Parts of America, Inc. Announces Form 12b-25 Filing With the Securities and Exchange Commission

LOS ANGELES, June 29 -- Motorcar Parts of America, Inc. ("MPA") , a leading provider of remanufactured alternators and starters for the automotive aftermarket, announced that it will file a Form 12b-25 (Notice of Late Filing) today with respect to its annual report on Form 10-K for the fiscal year ended March 31, 2006. MPA expects to file this Form 10-K no later than the fifteenth calendar day following the June 29, 2006 filing deadline.

During the course of the audit of its financial statements for the year ended March 31, 2006, MPA concluded that its previously filed quarterly financial statements for fiscal 2005 and 2006 included certain processing errors. This resulted in understated revenue from core sales, an over-statement of the related cost of goods sold, an understatement of the stock adjustment allowance and an overstatement of expected core returns from POS sales. While confirmation of the impact of these errors is being completed, MPA believes these processing errors should not result in a restatement of its previously filed financial statements for the year ended March 31, 2005 but may result in a material change in its previously reported quarterly financial results for certain of the fiscal 2005 and fiscal 2006 quarterly periods. For the year ended March 31, 2006, MPA believes that the net impact of these errors on the reported quarters will, in the aggregate, be positive. MPA also believes that the net impact on the full year ended March 31, 2006 will be positive.

Because the confirmation process is not complete, MPA is unable to finalize its Annual Report on Form 10-K for the year ended March 31, 2006 by the June 29, 2006 filing deadline.

About MPA

Motorcar Parts of America, Inc. is a leading remanufacturer 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, California, and Nashville, Tennessee, as well as in Mexico, Singapore and Malaysia. MPA's websites are located at www.motorcarparts.com and www.quality-built.com.

Disclosure Regarding Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements with respect to our future performance 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 our relationship with any of our customers, including the increasing customer pressure for lower prices and more favorable payment and other terms, the increasing strain on our cash position, our ability to achieve positive cash flows from operations, potential future changes in our accounting policies that may be made as a result of an SEC review of our previously filed public reports, our ability to file our Form 10-K no later than the fifteenth calendar day following the deadline, our failure to meet the financial covenants or the other obligations set forth in our bank credit agreement and the bank's refusal to waive any such defaults, any meaningful difference between projected production needs and ultimate sales to our customers, increases in interest rates, changes in the financial condition of any of our major customers, the impact of high gasoline prices, the potential for changes in consumer spending, consumer preferences and general economic conditions, increased competition in the automotive parts industry, difficulty in obtaining component parts or increases in the costs of those parts, political or economic instability in any of the foreign countries where we conduct operations, unforeseen increases in operating costs and other factors discussed herein and in our other filings with the SEC.