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AP Automotive Systems to Sell Aftermarket Unit to CATCO

8 May 1998

AP Automotive Systems, Inc. to Sell Non-Core Aftermarket Unit to CATCO

    TOLEDO, Ohio, May 8 -- AP Automotive Systems, Inc. announced
today that it had reached an agreement to sell its aftermarket division to a
privately owned company.  Terms of the cash transaction, which is expected to
be completed before the end of the second quarter, were not disclosed.
    The purchasers are Vange and Andy Proimos, of Hobart, Ind., whose
companies serve the automotive aftermarket.  They manufacture the CATCO(R)
catalytic converters through their Air Tek, Inc. company.  Vange Proimos will
head the new company created by the acquisition of AP's aftermarket unit.
    Terry Bernander, president and chief operating officer of AP Automotive
Systems, said that the disposition would enable AP to focus on its original
equipment manufacturing (OEM) business.  Proceeds from the sale will be
reinvested in the company's OEM operations, including production, research,
engineering and testing.
    "We are committed to improving our productivity and our expanding array of
value-added systems and services for the world's leading automobile, utility
vehicle and truck manufacturers," Bernander said.
    "The aftermarket business, while profitable, has totally different
dynamics and is not considered part of our core market," Bernander added.
"We must focus our time, energy and capital on our OEM business as we move to
strengthen our position in the global market."
    Vange Proimos said:
    "The combination of the CATCO business and the exhaust system operations
acquired from AP Automotive will create the most comprehensive line of
undercar exhaust products focusing on the aftermarket industry.  Our quality
production, breadth of coverage and creative and aggressive marketing program
will secure the success of this business combination."
    AP's aftermarket division, based in Goldsboro, N.C., produces a wide range
of exhaust system components, including tubing and mufflers.  Its sales do not
represent a material portion of total AP Automotive Systems revenues.
    AP Automotive Systems is the third largest producer of integrated exhaust
systems in the World.  Manufacturing facilities are in the U.S., Sweden and
the Netherlands and its OEM customer list includes GM, Ford, Mercedes, Volvo
and Kia.  R&D centers are in Toledo, Ohio, and Torsas, Sweden.
    AP Automotive Systems, a consolidation of Tube Products Corporation and
AP Parts International, is headquartered in Toledo and has annual sales of
approximately $600 million.  It is a portfolio company of Questor Partners
Fund, L.P.

SOURCE  AP Automotive Systems, Inc.