Texas Based Firm to Purchase Universal Distribution LLC

ALGONA, Iowa--Universal Distribution, LLC announced today that it has entered into a definitive agreement with AER Sales, L.P. to sell its automotive parts distribution business. Universal Distribution operates warehouse distribution centers in Des Moines, Iowa, Omaha, Nebraska, and Peoria, Illinois. It serves automotive dealerships located in those three states. It employs 10 persons.

Universal Distribution distributes remanufactured Ford and Motorcraft branded engine and transmission assemblies and other Powertrain related components, mainly to Ford dealerships. AER Sales operates a similar business in several sections of the country.

Universal Distribution is owned by Universal Mfg. Co. of Algona, Iowa. According to Don Heupel, President of Universal Mfg. Co., the sale of the business of Universal Distribution will not affect the business of Universal Mfg. Co., which remanufactures auto-parts such as transfer cases, transfer case engagement motors, fuel pumps, and brake calipers at its facility in Algona. Universal Mfg. markets its products to the independent aftermarket throughout the United States and Canada.

The transaction, which is subject to certain conditions, is expected to close in the second quarter of 2007. Terms of the transaction were not disclosed.