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Brake Headquarters U.S.A., Inc., Announces Q2 Results

24 August 1998

Brake Headquarters U.S.A., Inc., Announces Second Quarter Results

    LONG ISLAND CITY, N.Y., Aug. 24 -- Brake Headquarters U.S.A.,
Inc. (the "Company") reported gross sales increased by
$12.3 million or 166% to $19.7 million for the three months ended
June 30, 1998, and gross sales for the six months ended June 30, 1998
increased by $21.3 million or 137% to $36.9 million compared with the
corresponding period in 1997.
    Operating expenses increased in proportion with income, however, freight,
bad debts, and interest expense had additional increases.  Interest expense
also included a non-cash charge of $480,000 relating to private placements.
    As a result of the foregoing, the Company recorded a net loss for the
three months ended June 30, 1998 of $639,035 or $.14 per share (including a
$480,000 non-cash charge) as compared to net income of $56,383, or $.01 per
share for the three months ended June 30, 1997.  For the six months ended
June 30, 1998, the Company's net loss was $822,024 or $.18 per share, as
compared to net income of $89,622 or $.02 per share for the same period in
1997.
    The Company has been engaged in business as a wholesaler of undercar parts
since 1976.  The Company imports, assembles and distributes undercar parts to
the automotive after market industry.