CRAGAR Establishes Wire Wheel Supply Relationship
16 September 1998
CRAGAR Establishes Wire Wheel Supply Relationship With The Heafner Group
PHOENIX, Sept. 16 -- CRAGAR Industries, Inc.
has concluded negotiations to provide The Heafner Group with a substantial
proportion of its wire wheels for the 1999 calendar year. The Heafner Group
currently is composed of Heafner/ITCO Tires and Products (East Coast
Distribution Division), CPW (West Coast Distribution Division) and Winston
Tire - Auto Service and Repair (Retail Division).
Michael L. Hartzmark, President and CEO of CRAGAR, remarked, "Over the
past two years we have undergone an extensive cost cutting campaign to reduce
the cost of our wire wheels to levels currently observed in the market. In
that time we evaluated a number of component suppliers, many of which supply
our competitors, and were unable to find acceptable quality for our reputable
TRU=SPOKE brand. We have continued to work hard and have been able to qualify
sources that exceed our current quality standards. CRAGAR's emphasis on
product quality is consistent with the commitment of The Heafner Group to
provide their customers with high quality brands and products. This agreement
significantly expands our relationship with The Heafner Group and could
possibly more than double our sales of wire wheels."
Daniel K. Brown, Sr. Vice President Sales & Marketing for The Heafner
Group, added, "The CRAGAR name is highly recognized within the custom wheel
industry and by buyers of custom wheels. This is especially so in the wire
wheel category. As one of the nation's largest distributors of custom wheels,
we believe our selection of CRAGAR to supply our wire wheels brings added
value and benefits to The Heafner Group and its customers. We are very
pleased to have CRAGAR among our core custom wheel suppliers."
CRAGAR Industries, Inc. is an international designer, producer, and seller
of custom wheels and wheel accessories for cars, trucks, vans, sport utility
vehicles, racing vehicles, and motorcycles.
For additional information, contact Michael L. Hartzmark, President and
CEO, 602-247-1300. Internet address: http://www.prnewswire.com/cnoc. To
obtain hard copies, call Fax-On-Demand at 800-758-5804.
This release includes statements, which may constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
include, among other items, statements regarding the Company's business
strategy, gross strategy, anticipated synergies and benefits resulting from
potential acquisitions and future acquisition plans, and anticipated trends in
the Company's business. Forward-looking statements are inherently subject to
risks and uncertainties, some of which cannot be predicted or quantified.
Future events and actual results could differ materially from those set forth
in, contemplated by, or underlying the forward-looking statements. Please
refer to the Risk Factors in the Company's filings with the Securities and
Exchange Commission which identify certain important factors that could cause
the actual results to differ materially from those contained in our
forward-looking statements. These factors include, but are not limited to,
the bankruptcy of the Company's primary customer, dependence on external
financing, product availability, market conditions, as well as general
economic conditions. In view of the significant uncertainties inherent in the
forward-looking statements discussed above, the inclusion of such information
should not be regarded as a representation by the Company or any other person
that the objectives and plans of the Company will be achieved.