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Universal Automotive Industries, Inc. Reports 1998 Operating Income

16 March 1999

Universal Automotive Industries, Inc. Reports 1998 Operating Income Soars

    CHICAGO, March 16 -- Universal Automotive Industries, Inc.
(Nasdaq: UVSL, UVSLW) today reported 1998 full year operating income of
$1.8 million compared to an operating loss of $748 thousand in 1997.  1998
full year sales increased 4% over 1997 to $63.9 million.  The core brake
business grew 3% due to winning important new customers both in the US and
Canada, making significant gains in friction sales, and increasing market
acceptance of the Company's "Ultimate" products.  This growth was achieved
despite the February, 1998 bankruptcy of APS, Inc., once one of the Company's
largest customers.  1998 earnings improved as the full year net loss narrowed
to $181 thousand loss ($0.03 per share) from $2.1 million loss ($0.31 per
share) in 1997.  Earnings improvements resulted from increased sales, a
substantial reduction in bad debt write-offs as compared to 1998 and improved
expense control.
    For the fourth quarter, sales of brake parts increased 10% over the same
1997 quarter partially due to an aggressive pricing program to attract new
customers.  However, sales of the non-brake Csepel gray iron foundry slipped
in the fourth quarter compared to 1998 due to the cessation of orders from a
significant foundry customer for product ultimately destined for Russia.  The
fourth quarter loss of orders at the foundry had an unfavorable impact on the
Company's gross profit margins.
    "1998 was a turnaround year for Universal," commented Arvin Scott,
President and CEO.  "We are very pleased with our progress in several
important respects:

    A)  Our strategy of being the premier full line supplier of value line
        brake products was repeatedly proven as demonstrated by our
        growing customer list.
    B)  Our brake manufacturing facilities operated at full capacity which
        contributed to our improving earnings picture and our quality goals.
    C)  We are especially pleased with the double digit growth of our
        higher margin "Ultimate" brake products category.  "'Ultimate'
        products are designed to compete with the established market leaders
        by offering superior or, at a minimum, equal products with substantial
        marketing and product features."

    This news release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to
be covered by safe harbors created hereby.  Such forward-looking statements
involve known and unknown risks, uncertainties (including those risk factors
referenced in the Company's filings with the Securities and Exchange
Commission), and other factors that may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance, or achievements of the Company expressed or implied by
such forward-looking statements.
    The Company, headquartered in Chicago, specializes in the distribution and
manufacture of brake rotors and other brake parts, under its trademarks
"UBP - Universal Brake Parts(TM)," and "Ultimate(TM)' in the United States and
Canada.

                    Universal Automotive Industries, Inc.
                         Summary of Financial Results
                        (000's) Except Per Share Data

                            Quarter Ended Dec. 31        Year Ended Dec. 31
                             1998          1997         1998          1997
    Net Sales:
      Brake parts          $11,559       $10,520      $53,053       $51,312
      Non-brake             $2,174        $2,558      $10,815        $9,955
      Total                $13,733       $13,078      $63,868       $61,267

    Gross profit            $2,406        $2,600      $13,072       $13,016

    Gross profit percent     17.5%         19.9%        20.5%         21.2%

    Selling, general, and
      administrative
      expenses               2,757         5,025       11,244        13,764

    Income (loss) from
      operations             ($351)      ($2,425)      $1,828         ($748)

    Provision for lawsuit
      settlement                --            --         (151)          650
    Interest expense and
      other, net               548           503        2,246         1,758

    Pretax income(loss)      ($899)     ($2,928)        ($267)      ($3,156)

    Income tax
      provision(benefit)      (403)       (1,023)         (86)       (1,070)

    Net income (loss)        ($496)      ($1,905)        ($181)     ($2,086)

    Net income (Loss)
      Per Share             ($0.07)       ($0.28)       ($0.03)      ($0.31)

    Weighted Average
      Shares             6,769,425     6,769,425    6,769,425     6,751,732