Brake Headquarters USA, Inc. Announces Major Contract
30 October 1998
Brake Headquarters USA, Inc. Announces Major Contract to Private Lable Automotive Part Components
LONG ISLAND CITY, N.Y.--Oct. 29, 1998--Parts Will Be Sold At Two National Retail Automotive Parts
Chains, With Approximately 1,000 Stores Nationwide
Brake Headquarters USA, Inc. today announced that it has entered into an agreement with a major wholesale provider of automotive after-market components, in which the Company will "private-label" its line of brake rotors, drums and friction for sale at two nationwide retail automotive part and supply chains. Because of confidentiality agreements, the names of these two national chains cannot be disclosed at this time.
The first of these two retail chains has more than 90 locations nationwide. Brake Headquarters has been shipping product to this nationally recognized chain since September, 1998.
The second retail automotive parts chain participating in this agreement, has a major presence in the automotive parts after-market, with over 900 stores throughout the country.
Since the financial scope of this agreement is open-ended, the amount of revenue that the Company will ultimately generate from this contract is yet to be determined. However, management believes the size of this contract offers the potential of generating millions of dollars of revenue to the Company.
Joseph Ende, Chairman and CEO of Brake Headquarters commented "We are most pleased to have completed this major agreement in which two nationally recognized automotive after-market chains will sell our brake component systems. This represents our first contract as a "private-label" parts provider, which is a growing trend in the retail automotive parts industry. We strongly believe that this will represent a new major source of marketing and revenue growth for the Company, with multi-million dollar potential, and that additional "private-label" agreements with other leading automotive part vendors will follow".
Brake Headquarters USA Inc. is a rapidly growing wholesaler and distributor of automotive brake system products and other component parts for domestic and foreign cars and light trucks. Implementing a strategic plan to achieve accelerated growth both through internal expansion and acquisitions, revenues increased 138% during the six months ended June 30, 1998 to $34.8 million, versus $14.6 million reported for the comparable six month period ended June 30, 1997. The Company has imported, assembled, and distributed automotive parts to the automotive after market industry since 1976.
This statement contains certain forward-looking statements, which may involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance and achievements of the Company to be materially different from the results, performance, or expectations of the Company. These factors include, but are not limited to those detailed in the Company's periodic filings with the Securities and Exchange Commission.