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Cragar Industries, Inc. Forms Strategic Alliance to Develop New High-End Products

11 July 1997

Cragar Industries, Inc. Forms Strategic Alliance to Develop New High-End Products

    PHOENIX, July 11 -- In continuing to strive towards the
Company's objective of becoming the premier supplier of custom wheels and
wheel accessories in the automotive aftermarket, Cragar Industries, Inc.
announced the formation of a strategic alliance business
relationship with OE Enterprises, Inc. of Rochester Hills, Michigan.  The
Company is an industrial design and engineering firm with vast experience in
the design of automotive wheels for both OEM manufacturers and for the
aftermarket.
    Cragar has established the alliance with OE Enterprises for the specific
purpose of designing and engineering innovative styles for a variety of
aftermarket segments including truck, luxury/sport and street high
performance.  OE Enterprises will also be responsible for the development and
testing of production tooling and international standards compliance.  All
wheels manufactured will meet or exceed OE standards for quality, durability
and safety.  The OE Enterprises line will produce a higher dollar margin
product that will reach a new, and future potential, customer base for Cragar.
    "We needed the support of a strong design and engineering firm to help us
expand and enhance our product mix," said Michael Hartzmark, Cragar President
and CEO.  "OE Enterprises will play a key role in the development of our new
upscale, higher margin product line.  We plan to introduce four new styles
this fall and a total of eight new designs by year end."
    "We are extremely enthusiastic about this new relationship with Cragar,"
said OE Enterprises President Jamey Lykins.  "We will be able to focus our
efforts on what we do best -- wheel design and engineering -- while Cragar
takes the products to market with their powerful brand name and loyal
distribution.  We think it is a great match!"
    The OE Enterprises relationship is one of many strategies that will help
in achieving several of Cragar's IPO promises including increasing its
marketing, advertising and promotional efforts to further enhance and leverage
the strength of the Cragar brand name and, also, developing new products to
meet changing consumer demands.
    Cragar Industries is an international manufacturer and marketer of
automotive wheels and wheel accessories for cars, trucks and racing vehicles.
    In the content of this release, we may make forward-looking statements
regarding future events or the future financial performance of the Company.
Please refer to the Risk Factors in the Company's Registration Statement on
Form SB-2 which identifies some important factors that could cause the actual
results to differ materially from those contained in our forward-looking
statements.  These factors include product availability, market conditions,
and competitive factors as well as general economic conditions.

SOURCE  Cragar Industries, Inc.