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EBI Securities Initiates Coverage On Universal Automotive Industries, Inc

15 June 1999

EBI Securities Corp. Initiates Coverage On Universal Automotive Industries, Inc. with a BUY Rating

    DENVER, June 15 -- The following is being issued by EBI
Securities Corp., a member of the National Association of Securities Dealers,
CRD Number 16184.
    EBI Securities Corp. research analyst Jim Creamer issued a initiated
coverage on Universal Automotive Industries with a BUY rating
on the stock.
    Universal Automotive Industries is the parent company of UPB (Universal
Brake Parts) which is a manufacturer and a distributor of brake rotors, drums,
disc brake pads, relined brake shoes, wheel cylinders and brake hoses for the
automotive aftermarket.  Since commencing operations in 1981 as a distributor
of value line drums and rotors, the company has become a leading provider of
value line products in North America, which it markets under the UPB trademark
as well as under its customers' private labels.
    In his report, Creamer notes that he believes Universal Automotive will
nearly double their revenues in the next five years to over $123 million in
2003.  More importantly, he feels they will be able to take advantage of the
economies of scale generated and, on a percentage basis, will decrease the
fixed costs associated with cost of goods sold and SG&A.  If they are
successful at accomplishing their goals, Creamer estimates that the company's
gross margin will increase from 20.5% in 1998 to 23.4% in 2003.  Furthermore,
he estimates that the company will be able to decrease their SG&A costs from
17.6% of revenues in 1998 to 13.3% of revenues in 2003.
    Information and statements contained herein, other than historical
information, should be considered forward looking, which involve risk and
uncertainties.  EBI Securities Corp., its officers, directors and affiliates
may maintain positions in the securities referenced which may change at any
time without notice.  EBI is a market maker in the common stock ORYX.  The
securities referenced are speculative in nature and may not be suitable for
your investment objective.  Additional information is available upon request.