Standard Automotive Corp. Secures Financing

29 June 1998

Standard Automotive Corp. Secures Financing to Complete Purchase of R&S Truck Body Company and CPS Trailer Co.

    HILLSBOROUGH TOWNSHIP, N.J.--June 29, 1998-- Standard Automotive Corp. (AMEX:AJX, AJX.PR) announced today that it received from PNC Bank, N.A. and PNC Capital Markets Inc. a commitment to provide the company with a $40 million credit facility for the financing of the acquisitions of R&S Truck Body Company Inc. and CPS Trailer Co. Inc.
    PNC Bank, N.A. will underwrite and PNC Capital Markets Inc. will syndicate the credit facility which, in addition to providing approximately $25 million to complete the acquisitions of R&S and CPS, will satisfy the general working capital needs of the combined companies. Furman Selz LLC is assisting the company with these transactions as investment banker.
    R&S Truck Body Company Inc., with 1997 year end sales of $20,100,000, designs, manufactures and sells customized dump truck bodies and trailers, specialized truck suspension systems and related products and parts.
    CPS Trailer Co. Inc., with 1997 year end sales of $12,300,000, manufactures a variety of truck trailers for hauling commodities in agricultural, construction, and waste-hauling applications.
    Steven Merker, Chairman and Chief Executive Officer of Standard Automotive Corp., commented, "We are pleased to have R&S and CPS join Ajax in our growing family of specialty transportation manufacturing companies. The completion of these acquisitions will substantially add to our manufacturing capabilities and significantly increase our revenue and income. We are pleased to have the support of PNC as a financial partner in our growth process."
    As previously announced, the acquisitions are for a combination of cash and stock. The closing is expected to occur within the next 30 days.
    Standard Automotive Corp., through its wholly owned subsidiary Ajax Manufacturing Company Inc., is a North American manufacturer of trailer chassis sold to leasing companies, steamship lines, railroad and trucking companies.
    This release contains certain forward-looking statements which involve known and unknown risks, uncertainties and other factors not under the company's control which may cause actual results, performance achievements of the company to be materially different from the results, performance or expectations of the company. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.