Keystone Automotive Operations, Inc. Announces Plans to Refinance Existing Senior Secured Debt

EXETER, Pa., Dec. 4, 2006 -- Keystone Automotive Operations, Inc. ("Keystone" or the "Company") announced today that it intends to refinance its existing revolving credit facility and term loan B with new senior secured credit facilities (the "Proposed New Credit Facilities"). The purpose of the refinancing is to provide the Company with greater operational flexibility and liquidity to meet its growth and operational goals. The following discussion of potential terms of the Proposed New Credit Facilities is subject to consummation of such Proposed New Credit Facilities and is a summary of contemplated material terms as of the date hereof. The closing of the Proposed New Credit Facilities is anticipated to occur in January 2007. However, the Proposed New Credit Facilities may not be consummated, and if consummated, may contain materially different terms from the ones described below.

Keystone anticipates that the Proposed New Credit Facilities will consist of (a) term loan B in an aggregate funded amount of approximately $200.0 million and (b) an asset-based revolving credit facility with a commitment amount of $125.0 million substantially undrawn at close.

It is anticipated that the term loan B will be due in five years after the date of execution of the Proposed New Credit Facilities and the asset-based revolving credit facility is anticipated to mature, and the commitments there under are anticipated to terminate, as well on the fifth anniversary of the date of execution of the Proposed New Credit Facilities.

The interest rate margins applicable to amounts outstanding under the asset-based revolving credit facility are anticipated to be lower than the interest rate margins currently in effect under Keystone's revolving credit facility, while the interest rate margins applicable to the term loan B are expected to be higher than those for the existing term loans.

It is anticipated that the Proposed New Credit Facilities will be guaranteed by Keystone Automotive Holdings, Inc., and all of its subsidiaries. Keystone's obligations under the asset-based revolving credit facility are anticipated to be secured by a first priority security interest in all receivable and inventory and a second priority security interest in the stock of the subsidiaries and all other assets of the borrower and guarantors. Keystone anticipates that its obligations under the term loan B will be guaranteed by first priority security interest in all machinery and equipment, real estate, intangibles and stock of the subsidiaries of the borrower and guarantors and a second priority security interest in receivables and inventory.

Under the terms of the Proposed New Credit Facilities, Keystone anticipates a springing financial covenant based on availability under the asset-based revolving credit facility and no maintenance financial covenants under the term loan B. In addition, it is anticipated that the Proposed New Credit Facilities will contain customary negative and affirmative covenants similar to the existing term loans. Certain of the covenants in the Proposed New Credit Facilities are anticipated to be less restrictive than the corresponding covenants in Keystone's existing credit facility. Keystone anticipates that the Proposed New Credit Facilities will contain customary events of default, funding conditions, representations and warranties and other customary provisions for senior secured credit facilities.

Banc of America Securities LLC is arranging the Proposed New Credit Facilities.

About Keystone Automotive Operations

Keystone Automotive Operations, Inc. (www.ekeystone.com) is the largest distributor and marketer of specialty automotive accessories in North America, providing more than 800 product lines of automotive parts and accessories to approximately 16,000 wholesale customers. Keystone Automotive operates four distribution centers and 19 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 350 trucks that can provide next-day delivery to over 42 states and Canada.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. The principal risks and uncertainties include, but are not limited to: changes in general economic conditions, our ability to operate as a stand-alone company, labor and material costs, increased competition, our ability to develop and protect intellectual property and know-how, interest rate and foreign currency changes, environmental risks and conditions in end-markets. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether to reflect any future events, circumstances or otherwise.