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Brake Headquarters Announces Completion and Expansion

9 June 1998

Brake Headquarters, U.S.A., Inc. Announces the Completion of a Private Placement and Expansion of New Warehouse Location

    LONG ISLAND CITY, N.Y., June 8 -- Brake Headquarters U.S.A.,
Inc., (the "Company").  The Company announced it had completed a
private placement of $1.5 million of 8% Subordinated Convertible Debentures.
Mr. Joseph Ende, Chief Executive Officer and President of Brake Headquarters
stated that "this money is to be used to open new warehouse locations to
enable the Company to better service its customers and expand into new
territories, making the Company a truly national distributor of brake service
parts."
    The Company opened a new warehouse in Los Angeles, California, on
 June 1, 1998.  The Company has placed $1 million of inventory in drums,
rotors, and other brake service parts in the new facility.  This will enable
Brake Headquarters to better service current and new west coast customers by
providing second day delivery.  Mr. Ende indicated, "This will give us
distribution facilities coast to coast."
    The Company also opened its first distribution facility in Canada in the
Province of New Brunswick.  This is the start of an aggressive expansion into
the Canadian Market.  The Company anticipates expansion into new locations and
markets in the future.
    This press release contains certain forward-looking statements that
involve a number of risks and uncertainties.  The Company's actual results may
differ materially from the results discussed in the forward-looking
statements.  Factors that might cause or contribute to such differences
include, but are not limited to intense competition; the Company's dependence
on the automotive industry, which is cynical; historical decreases in internal
growth rates and historical losses, the Company's ability to manage growth;
and other risks discussed in reports filed by the Company with the Securities
and Exchange Commission from time to time.
    The Company has been engaged in business as a wholesaler of aftermarket
parts since 1976.  The Company imports, assembles, distributes and
manufactures a wide variety of parts to the automotive industry.