The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Kenwick Industries Completes Acquisition of Two Companies

24 August 1998

Kenwick Industries Completes Acquisition of Two Profitable Companies; Deals to Add Over $4.5 Million in Annual Revenues to Kenwick

    FT. LAUDERDALE, Fla.--August 24, 1998--Kenwick Industries, Inc. (OTC BB:KWIN) announced today they have completed the acquisition of Automax USA and Automax Finance, Inc. one week ahead of schedule.
    Kenwick Industries agreed to pay a total of 1 million shares of restricted Kenwick stock for both the dealership and finance companies combined in the "stock only" tax-free transaction. These acquisitions signify a pooling of interests and increase Kenwick's annual revenues by over $4.5 Million. Additionally, these acquisitions are accretive to earnings and share value.
    Kenwick is also pleased to announce that the original 1998 earnings (EBIT) projection of $1.2 Million provided by Automax should be exceeded by a considerable margin. Automax, Inc.'s accounting department has presented an earnings report to Kenwick's accountants showing unaudited six-month earnings of $905,000 (EBIT) through June 1998.
    This earnings rate, projected over the remainder of 1998, would add approximately $.46 per share to Kenwick's pre-tax earnings.
    According to Kenwick President, Mr. Ken Wulwick, these acquisitions come at a time when Automax is primed for growth. "Our goal now is to take the success of Automax and expand it to additional profitable locations. Automax has established name brand recognition and we want to capitalize on the value of that name."
    "With the tax-free nature of these transactions, these acquisitions are accretive to share value from the very start. We are excited about the profits and growth potential Automax adds to Kenwick Industries," concluded Mr. Wulwick.
    Kenwick Industries mid-range goal is to become a small cap NASDAQ Company by August of 1999. Toward this goal:

1.   Kenwick Industries is on track to become fully reporting with the
     SEC.

2.   Kenwick Industries has been effective in leveraging Company
     shares and has a very small number of outstanding common shares
     (about 3.9 million post-acquisition), of which the majority
     (about 3.6 million) are held by insiders. Kenwick's conservative
     use of the Company's funds and shares underscores management's
     commitment to the long-range success of the Company.

3.   Kenwick has established associations with significant players in
     the Company's areas of business (i.e. Philips Electronics).


About Kenwick Industries
    Kenwick Industries is a developing multi-industry corporation with an increasing scope of business interests. Kenwick seeks existing profitable acquisition targets with efficient management systems already in place. Kenwick manages profitable distribution systems nationally and internationally and presently has agreements to distribute language learning systems, including exclusive agreements to distribute acclaimed language programs from Philips Electronics N.V. . Kenwick Industries currently owns automotive retailing and financing businesses. The company's primary focus is on building profits and share value.
    This press release contains forward-looking statements with respect to the results of operations, expectations and business of the Company that involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. Risks and uncertainties of the Company will be detailed from time to time in the Company's periodic reports to be filed with the Securities and Exchange Commission.