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Holley Mgmt Team to Buy Holley Performance Products

14 April 1998

Holley Management Team to Purchase Holley Performance Products, Inc. From Coltec Industries

    BOWLING GREEN, Ky., April 14 -- The management group of
Holley Performance Products, Inc., led by Jeffrey G. King, President of the
business and sponsored by Kohlberg & Co., LLC, has reached an agreement in
principle to purchase the capital stock of Holley Performance Products, Inc.
from Coltec Industries Inc. . The agreement is subject to obtaining
the requisite governmental approvals and the final negotiation of a definitive
purchase contract.  The transaction is expected to close in May, 1998.
    Holley, with operations in Bowling Green, Ky. and Springfield, Tenn. is a
leader in the design, manufacturing and marketing of performance engine
management systems for the circle track (NASCAR), drag race (NHRA and IHRA),
street performance (muscle cars, street rods, trucks) and marine markets.
    Kohlberg & Co., LLC, is a private merchant banking firm that is located in
Mount Kisco, N.Y.  Kohlberg has invested more than $500 million in growing
companies since 1987, and has raised more than $1.5 billion of capital to
finance management buyouts, capital improvements, and add-on acquisitions.
    Jeffrey G. King, President of Holley Performance Products, Inc., said,
"Our strategy will be to significantly increase revenues through enhanced
marketing, investment in new products, and through targeted acquisitions of
bolt-on product lines and/or companies.  We are very pleased that Kohlberg &
Co. has stepped forward as our partner. Together we see significant growth
opportunities for Holley."
    Holley products are the heart and soul of performance engines and are used
throughout the world in racing, street and marine high performance engines.

SOURCE  Holley Performance Products