Top Source Joins Forces With American Modern Insurance Group

4 August 1998

Top Source Joins Forces With American Modern Insurance Group

    PALM BEACH GARDENS, Fla.--August 4, 1998--Top Source Technologies, Inc. (AMEX: TPS) announced today that it has entered into an agreement with American Modern Insurance Group, ("AMIG") an "A Rated" (excellent) insurance company with $1 billion in assets.
    Under the terms of the agreement, AMIG will develop and offer an extended auto engine and transmission service contract to consumers in the greater Jacksonville, Florida market who have their vehicle tested by the proprietary MotorCheck(TM) On-Site Oil Analyzer. Specifically, the owners or prospective owners of vehicles that pass the five minute MotorCheck(TM) diagnostic analysis, will be offered an extended powertrain warranty for three-months (3,000 miles), six months, (6,000 miles) or 9 months, (9,000 miles) at a very affordable price.
    Will Willis, Chairman & CEO stated: "We are excited about offering extended warranties as part of our MotorCheck(TM) Analysis Program. Now, used car buyers will not need to worry about buying someone else's problems when the seller is an individual rather than a dealer. The MotorCheck(TM) Analysis and the service warranty is a double defense against costly engine or transmission repairs. Also, the additional revenue generated from warranty sales make this an even more attractive product pairing for retailers."
    Tom Knighten, Sr. Vice President for American Modern Insurance Group, stated: "The use of the MotorCheck(TM) On-Site analyzer will enable us to more readily spot mechanical problems allowing us to effectively control claims expenses. This process will help us deliver mechanical breakdown protection to consumers more cost-effectively. We are most enthusiastic about the potential consumer benefits presented by this Jacksonville program."
    Mr. Willis added, "The proposed warranty test is in the final stages of development for fall '98 introduction. Initially we intend to offer warranties through the seven store tire retailers in Jacksonville, announced earlier, as part of our multi-unit retail test."
    Top Source Technologies, Inc. develops, assembles, and markets sophisticated technologies including the patented MotorCheck(TM) On-Site Analyzer, "an oil analysis mini-lab in a box," and proprietary Overhead Sound Systems.

Forward-Looking Statements

    The statements discussed in the press release relating to the Company's expectations that it anticipates generating additional revenues for the retailer offering OSA service as well as for the Company are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The results anticipated by some or all of these forward-looking statements may not occur.
    Important factors that could cause actual results to differ materially from the forward-looking statements include the following: (1) unexpected manufacturing problems or technical difficulties with the OSA-II, and (2) the Company's inability to market the OSA-II instrument in the Jacksonville marketplace.