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Automotive Performance Group Arranges Private Equity Financing

3 May 1999

Automotive Performance Group Arranges Private Equity Financing for its Proposed Acquisition of Loctite's Automotive Aftermarket Chemicals Business

    NEW YORK--May 3, 1999--Automotive Performance Group Inc. (OTC BB:RACG) disclosed today it has signed a letter of intent with Triumph Capital Inc., whereby Triumph will provide $40 million of private equity funds that will be utilized as part of APG's proposed acquisition of Loctite Inc.'s automotive aftermarket chemicals business.
    Triumph Capital is a Massachusetts-based financial management firm.
    "Arranging the private equity portion of the funding of our proposed acquisition of Loctite's automotive aftermarket chemicals business is a critical initial step in completing the transaction, and moving our company closer to emerging as a fast-growing, high-value-added producer and marketer of specialty chemicals and services for the automotive aftermarket and the aircraft/aerospace market," said Automotive Performance Group's (APG) Chairman and Chief Executive Officer, Dean M. Willard. "We expect to conclude the debt component of our financing program shortly."
    APG entered into a letter of intent to acquire the Loctite business for an undisclosed sum on Feb. 5, 1999. "We are pleased with our ability to arrange the private equity component of the overall financing in such a relatively short period of time," Willard added. "The Loctite automotive aftermarket chemicals operation could generate annual revenues in excess of $100 million, with well-above average EBITDA margins."
    Wasserstein Perella & Co. (New York) served as APG's investment banker for the transaction.
    Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties which may affect Automotive Performance Group Inc.'s business and prospects and cause actual results to differ materially from these forward-looking statements.
    Automotive Performance Group Inc. is a full-service owner and operator of high-performance automotive businesses, including Royal Purple Motor Oil, which produces synthetic oil and chemical products favored by many racing teams and manufacturers, and Klein Engines and Competition Components Inc., a leading manufacturer of high-performance engines.