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Automotive Perfomance Group Completes Private Placement

24 August 1998

Automotive Perfomance Group Completes $3.3 Million Private Placement


    TEMPE, Ariz.--Aug. 23--Automotive Performance Group, Inc. (OTCBB: RACG), a full-service owner and operator of high performance automotive businesses and brands, announced today that it has completed the private placement sale of 1.65 million shares of series A preferred stock for $3.3 million.
    In the fall, APG plans to file form SB-2, a registration statement under the Securities Act of 1933, with the Securities and Exchange Commission to enable the series A preferred shares to be converted to registered APG common stock. This conversion will fulfill the final requirement necessary for APG to file for trading on the NASDAQ smallcap market.
    "I am very pleased by the institutional support APG has received," said Andrew Evans Chairman and President of APG. "We look forward to an increase in the number of active APG shareholders as we grow into one of the nation's leaders in automotive brands and high performance products."
    The private placement was managed by KSH Investments of New York, N.Y.
    Automotive Performance Group is a full-service owner and operator of a variety of high performance automotive businesses including Royal Purple Motor Oil, which produces synthetic oil and chemical products favored by many racing teams and manufacturers, and Klein Engines and Competition Components, Inc., a leading manufacturer of high performance engines. In addition, APG owns Team Scandia, which last year became the second team in history and the first in a quarter century to record victories in three major North American racing series in the same year. Team Scandia won the 12 Hours of Sebring (Sports Car road racing), the Mopar Parts Nationals at Englishtown, N.J. (NHRA Top Fuel drag racing), and the Las Vegas 500K (IRL Indy car racing) in 1997. APG owns 50 percent of Scandia Bodine Racing, a competitor on the prestigious NASCAR Winston Cup stock car racing circuit. APG also has marketing and personal services agreements with its contracted drivers Jimmy Kite, Cristen Powell and Brett Bodine.