---

U.S. Automotive Manufacturing, Inc. Results for Q2

17 August 1998

U.S. Automotive Manufacturing, Inc. Results for Three and Six Months ended June 30, 1998

    NEW YORK, Aug. 17 -- U.S. Automotive Manufacturing, Inc.
reported that for the six months ended June 30, 1998, it
sustained a loss of $(1,613,079) or $(0.10) per share on net sales of
$9,357,169 compared to a loss of $(4,429,238) or $(0.49) per share and net
sales of $1,495,303 for the comparable period of 1997.
    Net Loss for the three months ended June 30, 1998, was $(638,839) or
$(0.04) per share compared to a net loss of $(2,794,165) or $(0.31) for the
comparable 1997 period.  Sales for the 1998 period were $5,937,296 compared to
$834,457 for the 1997 period.
    The net loss included a $179,807 write down of inventory in the second
quarter of 1998 to adjust to a new overhead allocation standard instituted as
a result of the Company's consultations with its independent auditors.
Notwithstanding, net loss for the second quarter of 1998 was 23% of the
comparable second quarter loss in 1997 and about 65% of the first quarter loss
of 1998.
    According to Martin Chevalier, President, and CEO, "the Company has made
significant progress in the quarter ended June 30, 1998 toward its goal of
achieving profitability.  Sales increased 600% over the comparable quarter in
1997 and over 70% when compared to the 1998 first quarter."  Mr. Chevalier
further stated that "Gross profit increased approximately tenfold during the
three months ended June 30, 1998 from the comparable quarter in 1997 and was
almost double gross profit recorded in the first quarter 1998.  At August 1,
1998, the Company employed 345 full-time and temporary employees as compared
to 249 employees at March 31, 1998.  In the Company's last report," he
continued, "I noted that the Company must always service its customers
appropriately and to do that, we expect to run heavy overtime until new
personnel have been fully integrated.  During the second quarter we spent in
excess of $365,000 in overtime pay."  The Company continues to spend overtime
pay while it hires and trains new employees.  Mr. Chevalier added that "We
currently estimate that an additional 50 full-time employees will be necessary
to meet current production needs but we anticipate that the cost of hiring and
training additional employees should be significantly less than the overtime
pay currently being spent."
    Mr. Chevalier concluded by stating that "The Company raised over
$2,000,000 in a convertible debt offering at the end of the quarter to
strengthen the Company's cash position.  Management continues to be fully
committed to returning the Company to profitability in the near term and that
recent financial performance indicates strong progress toward achieving such a
goal."
    U.S. Automotive Manufacturing, Inc. through its wholly-owned subsidiaries,
Quality Automotive Company and U.S. Automotive Friction, Inc., manufactures,
assembles and distributes new and rebuilt automotive friction products (brake
pads, linings and remanufactured brake shoes) to other automotive
manufacturers and to the automotive after-market.  The Company intends to
position itself to compete more formidably in the manufacture and sale of
friction materials as well as other "under car" automotive parts through both
acquisition and internal growth.
    "Safe Harbor" Statement under the Private Securities.  Litigation Reform
Act of 1995: The statements which are not historical facts contained herein
are forward-looking statements that relate to plans for future activities.
Such forward-looking information involves a number of important known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements of the Company expressed
or implied by such forward-looking statements.  Such risks, uncertainties and
factors, include, but are not limited to, those relating to the integration of
recently acquired companies, industry competition, possible need for future
financing and possible obsolescence of equipment and other risks detailed in
the Company's filings with the Securities and Exchange Commission.  The words
"believe", "expect", "should", "anticipate", "intend", "plan" and similar
expressions identifying forward-looking statements.  Readers are cautioned not
to place undue reliance on these forward-looking statements, which only speak
as of the date the statement was made.