Motorcar Parts of America, Inc. Announces $40 Million Private Placement Financing

LOS ANGELES, May 18, 2007 -- Motorcar Parts of America, Inc. ("MPA") (BULLETIN BOARD: MPAA) , a leading provider of remanufactured alternators and starters for the automotive aftermarket, announced today that it has entered into an agreement with certain accredited investors for the private placement of 3.64 million shares of its common stock at a price of $11.00 per share, for anticipated aggregate gross proceeds of $40,061,000. In connection therewith, MPA will issue warrants to purchase up to 546,283 shares of its common stock at an exercise price of $15.00 per share that are callable by MPA under certain conditions. The closing is expected to be as soon as practicable. The proceeds will be used for general corporate purposes.

The shares and warrants will not be registered under the Securities Act, or any state securities laws, and will be sold and issued in a private placement transaction under Regulation D. Unless the shares and warrants are registered, they may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. MPA is obligated to register the shares, including the shares issuable upon exercise of the warrants, for resale on a registration statement to be filed on or prior to July 31, 2007. Additional information about the private placement financing is set forth in the company's Current Report on Form 8-K filed with the Securities and Exchange Commission today.

Under its credit agreement with Union Bank of California, N.A., MPA is subject to certain loan covenants. On May 16, 2007, in connection with the private placement financing, Union Bank notified MPA that the bank has agreed to waive certain violations of those covenants subject to the closing of the financing.

Selwyn Joffe, Chairman, President and CEO of MPA, stated, "I am excited with our enhanced working capital base. MPA is now financially much stronger and is in a position to deploy some of this working capital to enhance our growth and assure successful completion of our off-shore initiative." Joffe also said, "We are thrilled with the quality and diversity of our enhanced shareholder base."