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Prestolite and Ecoair Sign Technology Agreement

29 June 1998

Prestolite and Ecoair Sign Technology Agreement

    ANN ARBOR, Mich., June 29 -- Prestolite Electric Incorporated
today announced that it has signed a technology and collaboration agreement
with privately-held Ecoair Corporation of New Haven, CT.  Prestolite will
manufacture the Ecoair alternator for sale to truck, bus, emergency vehicle
and other markets.  Prestolite also made an equity investment in Ecoair and
has an option to make an additional investment.
    The Ecoair alternator employs permanent magnet technology.  Its patented
design results in an alternator that runs more efficiently than today's
industry standard, producing more power at significantly increased efficiency
from an equivalent frame size and generating more electrical power when a
vehicle is at idle.
    According to Kim Packard, president of Prestolite, "The unique Ecoair
technology will allow us to produce higher-output alternators in smaller
packages, better serving the needs of our customers.  Importantly, the Ecoair
alternator will save fuel due to increased alternator efficiency."
    Ecoair President Peter Knudsen added, "The Ecoair alternator, five years
in development, is covered by eight U.S. patents.  Prestolite's manufacturing
expertise and strong Leece-Neville brand name will allow us to complete the
process of bringing this product to market."
    Commercial production of the first units is targeted for mid-1999 at the
Prestolite factory in Arcade, New York.
    Ecoair Corporation is a high-technology company that invents, develops and
licenses energy-efficient, environmentally friendly electrical products
related to the future electrical power needs of vehicles.  In addition to the
Ecoair alternator, Ecoair inventions include a low-pressure high-efficiency
air conditioner, an integrated starter/alternator and a device that enables a
vehicle to act as a backup generator for house current.
    Prestolite Electric Incorporated manufactures alternators, starter motors,
direct current motors, battery chargers and switching devices.  These are
supplied under the Prestolite, Leece-Neville, Hobart and Butec brand names for
original equipment and aftermarket application on a variety of vehicles and
industrial equipment.  The equity of the company is owned by Genstar Capital
Corporation and management.
    This release contains forward-looking statements regarding the anticipated
results of the Company.  The Company undertakes no obligation to publicly
release any revisions to any forward-looking statements to reflect events or
circumstances occurring after the date of this release.  The Company's actual
results may differ materially from those projected in forward-looking
statements made by, or on behalf of, the Company.