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Prestolite Electric Completes Exchange Offer

31 July 1998

Prestolite Electric Incorporated Successfully Completes Exchange Offer For 9-5/8% Senior Notes Due 2008

    ANN ARBOR, Mich., July 31 -- Prestolite Electric Incorporated
announced today the successful consummation of its offer to exchange up to
$125.0 million principal amount of its newly issued 9-5/8% Senior Notes due
2008 ("Exchange Notes"), which have been registered under the Securities Act
of 1933, as amended (the "Securities Act"), for a like amount of its 9-5/8%
Senior Notes due 2008 ("Private Notes") originally issued and sold on January
21, 1998 in transactions exempt from registration under the Securities Act.
The offer and withdrawal rights expired at 5 p.m., New York City time, on
Monday, July 27, 1998, at which time $124.7 million aggregate principal amount
of the Private Notes had been tendered and not withdrawn.  The Company has
accepted for exchange all Private Notes validly tendered and not withdrawn
prior to the expiration of the exchange offer.
    The Exchange Notes issued in exchange for the Private Notes have
substantially the same terms and conditions as the unregistered Private Notes,
except that the Exchange Notes are not subject to the restrictions on resale,
or transfer, which applied to the unregistered Private Notes.  The remaining
$0.3 million aggregate original principal of the Private Notes not tendered in
the exchange offer shall continue to be, represented by the untendered and
unregistered Private Notes.
    Prestolite Electric Incorporated manufactures alternators, starter motors,
direct current motors, battery chargers and switching devices.  These are
supplied under the Prestolite, Leece-Neville, and Butec brand name 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.