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Arrow Automotive Signs Letter of Intent With Motorcar Parts and Accessories

21 September 1998

Arrow Automotive Signs Letter of Intent With Motorcar Parts and Accessories, Inc.


    CONWAY, Ark.--Sept. 21, 1998--Arrow Automotive Industries (ASC:AI) has announced that it has signed a Letter of Intent with Motorcar Parts and Accessories, Inc. of Torrance, CA to sell certain of Arrow's operating assets, including its electrical parts division and its clutch and crankshaft remanufacturing division, for a combination of cash and the assumption of certain liabilities. Arrow will continue to own its real estate located in Morrilton, Arkansas and Spartanburg, South Carolina.
    The sale of Arrow's electrical division and its clutch and crankshaft remanufacturing division would be part of Arrow's continuing efforts in analyzing strategic alternative to maximize shareholder value, including the possible divestiture of some or all of Arrow's remaining assets.
    Arrow remanufactures a variety of replacement parts for domestic and imported vehicles for distribution throughout the United States and Canada. Motorcar is a leading manufacturer of alternators and starters for both imported and domestic cars and light trucks in the United States and Canada.