The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Worldwide Equipment Reports Breakdown in Negotiations with Romania's State Ownership Fund

11 June 1999

Worldwide Equipment Corp. Reports a Breakdown in Negotiations with Romania's State Ownership Fund

    ARDSLEY, N.Y.--June 10, 1999--Worldwide Equipment Corp. (OTC BB:WWDE) today reported that East European Imports, Inc., after long negotiations, has been unable to finalize terms with Romania's State Ownership Fund (SOF) in its bid to acquire majority ownership of the ARO S.A. factory, builders of the ARO 4X4 sports utility vehicle. ARO of America, Inc, a partially-owned subsidiary of Worldwide Equipment Corp. owns approximately 40% of Eastern European Imports.
    Additionally, in the past 60 days, East European Imports, Inc. has failed in its attempt to sign a long-term supply and distribution contract with the ARO, S.A. factory for the ARO 4X4.
    The board of directors of East European Imports, Inc. has voted to commence the liquidation of its assets.
    With EEI unable to import and distribute ARO vehicles and International Tractor Company, Inc., a wholly-owned subsidiary of Worldwide Equipment Corp., unable to return to profitability, it may become difficult for the company to continue as a going concern and raise financing.
    Mitchell Hymowitz, interim president of Worldwide Equipment Corp., stated, "We will continue to look for possible merger and acquisition opportunities."

    "Safe Harbor" Statement

    Except for the historical information contained herein, certain of the matters discussed in this press release are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, which involve certain risks and uncertainties, including but not limited to, changes in general economic conditions, material prices , labor costs, interest rates, consumer confidence, competition, environmental factors, and governmental regulations affecting the company's operations.