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Prestolite Electric Announces Joint Venture with Daewoo

4 August 1998

Prestolite Electric Announces Joint Venture with Daewoo; New Firm to Manufacture Material Handling Motors in South Korea

    ANN ARBOR, Mich., Aug. 4 -- Prestolite Electric Incorporated
today announced that it has formed a joint venture with Inchon, South Korea-
based Daewoo Heavy Industries.  The new company, to be named "Prestolite Asia
Ltd.," will be equally owned by Prestolite and Daewoo and will manufacture
material handling motors at a facility in Inchon, South Korea.
    Daewoo is contributing 50 percent of the capital and its existing motor
manufacturing operation to the joint venture.  Ann Arbor, Mich.-based
Prestolite is contributing the remaining 50 percent of the capital and will be
providing certain technology.
    Mr. W.J. Park has been named as chief executive officer of Prestolite
Electric Asia Ltd.
    Prestolite Asia Ltd. will supply direct current motors to Asian forklift
manufacturers, including Daewoo.  Motor sales of the joint venture for the
year 2000 are targeted at $8 million.  In the second phase of the venture,
Prestolite Asia Ltd. is expected to expand beyond motors to other products in
the material handling industry such as contactors, controllers and battery
chargers.  Prestolite currently manufactures motors and contactors in both
North America and Europe and manufactures battery chargers and controllers in
the United States.
    "Daewoo is happy to benefit from the leading-edge technology that
Prestolite will provide to the new venture," said H.S. Choo, president of
Daewoo Heavy Industries.
    "Prestolite is proud to be associated with the industrial strength of
Daewoo," commented P. Kim Packard, president of Prestolite Electric
Incorporated.
    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.  Genstar Capital Corporation and management own the
equity of the company.
    This release contains forward-looking statements regarding the anticipated
results of the Company, which involve risks and uncertainties.  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 or to reflect the occurrence of unanticipated events.  The
Company's actual results may differ materially from those projected in
forward-looking statements made by, or on behalf of, the Company.