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Boyds Wheels, Inc. Emerges From Bankruptcy

12 January 1999

Boyds Wheels, Inc. Emerges From Bankruptcy; Plan of Reorganization Confirmed

    STANTON, Calif., Jan. 11 -- Boyds Wheels, Inc.
(OTC Bulletin Board: BYDSQ) and its wholly owned subsidiary, Hot Rod by Boyds,
has emerged from the protection of the bankruptcy system by confirming a joint
plan of reorganization before the United States Bankruptcy Court, Santa Ana
Division.  The plan was accepted by 85 percent of Boyds Wheels' creditors.
    Under the plan of reorganization, Automotive Performance Group will infuse
approximately $2 million to recapitalize the companies and will take an
80 percent controlling interest.  Boyds Wheels, Inc. intends to resume its
manufacturing operations, which ceased last year.  Under the plan, Boyds
anticipates that most of its manufacturing activities will be outsourced to
Asia to reduce future production costs and overhead.
    "The overwhelming acceptance of the plan by a majority of the Boyds'
creditors made confirmation a mere formality," stated Evan D. Smiley of Costa
Mesa-based Albert, Weiland & Golden, LLP, which filed the Chapter
11 bankruptcy and plan of reorganization on behalf of Boyds Wheels, Inc.
"Decisions to discontinue manufacturing operations, and auction off
unprofitable fixed assets have been carefully executed, enabling Boyds to cut
overhead costs.  This drastic restructuring allowed Boyds to reach a consensus
among the creditors and will give Boyds an opportunity to make a profitable
comeback."
    The reorganization process includes provisions for the approximate
300 creditors to receive 17 percent of the publicly traded stock of Boyds
(BYDSQ), as well as their pro-rata share of 200,000 shares of APG, which
trades under the symbol (RACG).  APG is the parent company of the Scott Bodine
Racing and Team Scandia racing teams, Klein Engines and Royal Purple Motor
oil.  The 3,500 existing equity holders of Boyds will retain 3 percent of
Boyds' stock.
    According to Jack Karkosky, president of Boyds, "Boyds Wheels has spent
the last six months working hard to reach a consensus and come up with a plan
of reorganization that serves the best interest of all of the company's
constituents including its creditors and shareholders.  We believe this plan
allows Boyds to effectively achieve this goal."
    Boyds announced that it had filed for Chapter 11 in January 1998.  A plan
of reorganization was filed with the United States Bankruptcy Court in July.

    SAFE HARBOR STATEMENT
    "Safe Harbor" Statement Under the Private Securities Litigation Reform
Act.  With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements that
involve risk and uncertainties.  These risk factors include, but are not
limited to, the ability of the company to quickly resume full scale business
operations, the impact of market forces of supply and demand on pricing and
other competitive pressures on pricing, governmental regulations, financial
projections, production difficulties, the ability of the Company to get its
stock re-listed on a recognized stock exchange and the long or short term
value of its securities and/or any securities to be issued to creditors in
connection with the reorganization (the value of which is uncertain and
speculative), and/or other factors outside the control of the Company.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.  The Company undertakes no
obligation to release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.