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Brake Headquarters U.S.A., Announces Repurchase of Debentures

16 September 1998

Brake Headquarters U.S.A., Inc. Announces CEO's Repurchase of Convertible Debentures

    LONG ISLAND CITY, N.Y., Sept. 16 -- Brake Headquarters
U.S.A., Inc. (Nasdaq: BHQU, BHQUW) (the "Company") announced today that Joseph
Ende, The Company's Chairman of the Board and Chief Executive Officer, on his
own behalf has entered into agreements with two current debentureholders to
repurchase an aggregate of $850,000 of convertible debentures (the
"Debentures").  Mr. Ende has already purchased $50,000 of the Debentures and
is obligated to complete the repurchase prior to November 2, 1998 subject to
his obtaining personal bank financing which was not available to the Company.
The Debentures were part of $1 million principal amount of 5% convertible
subordinated debentures issued on November 7, 1997, which are currently
convertible into Common Stock and mature on November 7, 1998.
    Mr. Ende has agreed to convert the entire $850,000 of Debentures to be
purchased by him into permanent equity.  The Debentures are currently
convertible into more than 3 million shares of Common Stock.  Mr. Ende intends
to hold such shares for investment purposes, whereas the debentureholders were
free to sell the underlying registered Common Stock immediately upon
conversion.
    The Company believes that the cessation of business by its principal
market maker and the recent market corrections on Wall Street, have created
undue pressure on its stock price and its stock is currently trading at a
fraction of its book value.  Mr. Ende stated, "It is in the best interests of
the Company and its shareholders for me to purchase these Debentures and
reduce any additional pressure on the stock price from the sale of new
shares."  Mr. Ende further stated, "I have tremendous confidence in the
Company and the Company's ability to continue to grow in the future."
    The Company has been engaged in business as a wholesaler/distributor of
automotive parts since 1976.  The Company imports, assembles and distributes
automotive parts to the automotive after-market industry.