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Boyds Wheels Files Reorganization Plan

22 July 1998

Reorganization Plan Filed To Bring Back Boyds Wheels, Inc.

    Hot Rod Design Icon Boyd Coddington Returns to the Company He Founded

    STANTON, Calif., July 22 -- Boyds Wheels, Inc.
, and its wholly owned subsidiary, Hot Rods By Boyd, filed a
joint plan of reorganization with the United States Bankruptcy Court late
yesterday.  According to the plan, Boyd Coddington, founder and namesake of
the company, will return and serve in the capacity of Chief Executive Officer
and Chairman of the Board of Directors.
    Founded by Coddington in 1988, Boyds Wheels, Inc., designs, manufactures,
and markets high quality aluminum and billet wheels and accessories for the
specialty automotive and motorcycle aftermarkets.  The company went public in
1995.  Hot Rods By Boyd, founded in 1977, designs and builds custom vehicles.
The companies share a collaborative marketing effort.
    Although recognized for his name-inscribed line of billet and aluminum
wheels, Coddington is internationally known for his automotive designs.
Vehicles, such as the Aluma Coupe and Roadstar, among others, have been
featured in the pages of automotive and general lifestyle magazines worldwide.
    Coddington, who served as the CEO and President of the pre-bankruptcy
Boyds from its founding until August, 1997, is leading the reorganization plan
to retain the company that bears his name.  "Boyds Wheels is a big part of
me," comments Coddington, an automotive icon and legendary designer and
builder.  "I would do anything to aid in its recovery and to reestablish it as
a recognizable and profitable company."
    The reorganization process will see Boyds Wheels retaining the profitable
parts of the company, restructuring much of the debt into equity, and
eliminating much of the massive overhead of the pre-bankruptcy operation.  "We
were fortunate that we made the right decisions at the right times in terms of
discontinuing manufacturing operations, cutting overhead, auctioning off the
assets which were no longer beneficial to the company, reaching a consensus
among the creditors, deal-making, and persuading the creditors that Boyds
Wheels could make a comeback," states Evan D. Smiley of Albert,
Weiland & Golden, LLP, counsel to Boyds.
    Maintaining its headquarters at a different and smaller location in
Stanton, Calif., Boyds Wheels' internal operations will be drastically
restructured and considerably different than the pre-bankrupt company.  While
the operation's headquarters will consist mainly of management, sales and
marketing, research and development, and billet wheel manufacturing, plans are
underway for the majority of the company's manufacturing operations to be
outsourced to companies in Asia.  This will result in the reduction of per
wheel manufacturing costs to half of the previous totals.  In addition, the
company will continue to produce Boyds Ultra Violet, a line of car care
products.
    The steps toward reorganization resulted from the company filing for
Chapter 11 on January 30, 1998.  Boyds Wheels entered into bankruptcy with
$15 million in debt, and through issuance of stock to its creditors and a
substantial capital contribution by Coddington, will emerge substantially
debt-free.  Seeking to accomplish the reorganization, Boyds Wheels will pay
off all of its secured debt and give general unsecured creditors 12 percent of
the company's stock.  Although existing equity will be diluted, the projected
net income of Boyds Wheels is anticipated to be sufficiently to restore
substantial value to the equity holders.  In conjunction with the
reorganization, the stock will continue to be publicly traded.
    Following the filing, the process will be brought before the court and the
creditors will vote.  If approved, the plan will go into effect.
    For additional information and/or comments, contact Evan D. Smiley of
Albert, Weiland & Golden at (714) 966-1000.