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APS Holding Corporation Announces Modification of DIP Financing Covenants

27 August 1998

APS Holding Corporation Announces Modification of DIP Financing Covenants

    HOUSTON, Aug. 27 -- APS Holding Corporation
(OTC Bulletin Board: APSIQ) announced today that it has reached agreement with
its Bank Lending Group, led by The Chase Manhattan Bank as agent, regarding
modifications to the covenants associated with its post-petition DIP financing
agreement.  Among the covenant modifications agreed to is a waiver of any
violations of the Company's EBITDA covenant through September 30, 1998.
    APS Holding Corporation, which has been in Chapter 11 bankruptcy since
February 2, 1998, has not been in violation of any of its financial covenants
through July 1998.  The Company had indicated in its fiscal 1998 10-K and
first quarter 1999 10-Q filings that without modification it might violate
financial covenants in the second or third quarters of fiscal 1999, which end
July 25 and October 25, 1998, respectively.
    APS Holding Corporation is a national distributor of Big A(R) brand and
manufacturer branded automotive replacement parts, as well as tools,
equipment, supplies and accessories.  The Company sells to approximately 1550
associated auto parts stores through 23 Distribution Centers and operates
approximately 350 company-owned stores under the Big A and Big A Express
brands.
    This news release contains forward-looking statements that involve risks
and uncertainties.  Actual results, events and performance could differ
materially from those contemplated by these forward-looking statements.  Among
the factors that could cause actual results, events and performance to differ
materially are risks and uncertainties discussed in this news release and
those detailed from time to time in the Company's filings with Securities and
Exchange Commission, including the Company's annual report on Form 10-K for
the fiscal-year ended January 31, 1998 and the Company's quarterly report on
Form 10-Q for the quarterly period ended April 25, and in the Company's other
public reports and statements.