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Brake Headquarters U.S.A. Inc. Adopts Poison Pill

9 October 1998

Brake Headquarters U.S.A. Inc. Adopts Poison Pill

    LONG ISLAND CITY, N.Y., Oct. 8 -- Brake Headquarters U.S.A.
Inc. (Nasdaq: BHQU; BHQUW) announced today that its Board of Directors had
unanimously adopted a Shareholder Rights Plan, commonly referred to as a
poison pill (the "Plan").  The Plan was adopted in view of the currently low
market prices for the Company's securities.  Under the Plan, each shareholder
of record (except as noted below) on October 13, 1998 (the "Record Date") will
receive rights (each, a "Right") for shares of Common Stock held on the Record
Date or issued thereafter until the Distribution Date (as defined below).
    The Board of Directors may declare a "Distribution Date," generally, where
a person acquires over 15% of the voting stock, at which time the Rights will
become exercisable to all stockholders except the party acquiring over 15%.
Each Right entitles the holder to purchase two "Units" of Preferred Stock
(each such Unit, entitling the holder to one vote per Unit on an equal basis
to the Common Stock) for each share of Common Stock.  The Board may redeem the
Rights prior to an event occurring under the Plan.  The Plan will not affect
the Company's financial condition nor should it result in a taxable event for
the Company or its shareholders.
    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 aftermarket industry.