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Spectra Premium Announces Issue of Special Warrants

7 May 1998

SPECTRA PREMIUM ANNOUNCES A TREASURY AND SECONDARY ISSUE OF $80,514,000 OF SPECIAL WARRANTS

    MONTREAL, May 7 /CNW-PRN/ - Spectra Premium Industries Inc. (``Spectra
Premium'') announced that it has entered today into an Underwriting Agreement
with a syndicate of underwriters led by RBC Dominion Securities Inc. and
including CIBC Wood Gundy Securities Inc. and Midland Walwyn Capital Inc.
pursuant to which they have agreed to buy and Spectra Premium and its
Principal Shareholders have agreed to sell an aggregate of 4,473,000 Special
Warrants, on a private placement basis and subject to regulatory approval, at
a price of $18.00 per Special Warrant, for an aggregate amount of $80,514,000.
Of such aggregate proceeds, an amount of $67,556,088 will be for the account
of Spectra Premium and the balance $12,957,912 for the account of the
Principal Shareholders. Each Special Warrant will be exercisable, without any
additional payment, into one Subordinate Voting Share of Spectra Premium.
Spectra Premium expects to file a preliminary prospectus to qualify the
Special Warrants and the underlying Subordinate Voting Shares to be issued
pursuant to the exercise of the Special Warrants as soon as practicable after
Closing. Closing of the Special Warrants is expected to occur on or about May
20, 1998.
    Spectra Premium also announced that it completed the acquisition of
Radiateurs Laniel Lte and Multi-Rservoirs 2000 inc., of Montreal (Quebec),
on May 1st, 1998, for an aggregate consideration of approximately $9 million.
These transactions will permit Spectra Premium to take an important share of
the radiator and oil pan markets in Canada in the aftermarket.
    Spectra Premium is the leading North American aftermarket manufacturer
and supplier of car and light truck fuel tanks and related products. Spectra
Premium's shares trade on the Montreal Exchange and The Toronto Stock Exchange
under the ticker symbol SPD.