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J.T. Granatelli Lubricants, Inc. Initiates Negotiations

1 September 1998

J.T. Granatelli Lubricants, Inc. Initiates Negotiations With Australia's Largest Retail Tire Chain

 Bob Jane T-Marts Would Become First Retail Outlet in Australia to Offer the
                         J.T. Granatelli Product Line

    CAMARILLO, Calif., Aug. 31 -- J.T. Granatelli Lubricants,
Inc. (OTC Bulletin Board: LUBR) announced today that it has initiated
negotiations with Australia's largest retail tire chain,  Bob Jane T-Marts, to
become the first retail outlet in Australia to offer J.T. Granatelli's entire
product line to its customers.  The line includes motor oil, motor vehicle
lubricants, car care products, multi-purpose cleaners and a tire sealant.
    Headquartered in Melbourne, Australia, Bob Jane T-Marts is also one of the
largest tire distributors in the world, with total sales of over 1.5 million
tires annually.  In addition to its Australian stores, the company exports
products into China and other Asian countries.
    Bob Jane, CEO of Bob Jane T-Marts, said, "The J.T. Granatelli product line
will provide our stores with an additional source of revenue.  The tire
sealant is a natural for us since we can flat-proof tires as we install them
for the customer.  In addition, Granatelli's Waterless Car Wash and Cleaner
and Degreaser and other car care products fit nicely into our product mix."
    Harry Hibler, President of LUBR, stated, "T-Mart has placed a large sample
order of our products for immediate delivery in order that they may do
comprehensive test marketing.  In fact, T-Mart has already used our products
on their company test cars and were very impressed.  It is projected that the
results of their comprehensive tests will be positive as well and a contract
and orders will follow immediately."
    J.T. Granatelli Lubricants, Inc. manufactures, markets, sells and
distributes its proprietary line of motor oil, general household and motor
vehicle lubricants and contiguous products to the global marketplace.  J.T.
Granatelli Lubricants, Inc. trades publicly under the symbol LUBR on the
Nasdaq Bulletin Board.
    Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: Statements in this news release looking forward in time involves
risks and uncertainties, including primary customer order rates,
cancellations, late delivery of customer components which cause production
delays, dependence upon certain customers, dependencies upon key executives,
viability of quarterly results, single operating facility, competition,
product liability risk, control by management, limited trading market and
volatility of stock prices, foreign currency fluctuation, conflicts of
interest, and other risk factors detailed in the Company's applicable SEC
filings.