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Standard Automotive Corporation Closes Acquisition of Ranor, Inc.

22 June 1999

Standard Automotive Corporation Closes Acquisition of Ranor, Inc., With 1998 Revenues of More Than $17.7 Million and EBIT in Excess of $4.2 Million

    SOMERVILLE, N.J.--June 22, 1999--STANDARD AUTOMOTIVE CORPORATION (AMEX:AJX,AJX.PR) (the "Company" or "Standard") today announced that its subsidiary Critical Components Corporation has completed the acquisition of Ranor, Inc. ("Ranor"), a leading fabricator of large precision assemblies for the aerospace, nuclear, industrial and military markets. Located in Westminster, Massachusetts, Ranor had total revenues of $17.7 million and EBIT (Earnings Before Taxes and Interest) in excess of $4.2 million, during 1998. Ranor had sales of 11.3 million for the first five months of 1999. The acquisition will be immediately accretive to the earnings of Standard.
    The total cost of the acquisition. was $28.8 million, consisting of $5.3 million of Seller Notes and $23.5 in cash. The cash portion of the transaction was drawn down from a credit facility arranged through PNC Bank, N.A. and PNC Capital Markets which was increased from $40 million to $70 million. ING Baring Furman Selz, Standard's investment banker, assisted in structuring the transaction and financing arrangements.
    Steven Merker, Chairman of Standard commented, "We are very pleased that we completed the acquisition of Ranor. Ranor represents the fourth acquisition successfully completed by our Company during the past eighteen (18) months and is the latest in a series of transactions to expand our product lines. The addition of Ranor establishes our presence in a number of new and growing markets including the aerospace and nuclear component industries. Critical Components Corporation intends to aggressively pursue additional accretive acquisitions to expand our product lines into new growth markets".
    STANDARD AUTOMOTIVE CORPORATION, with production facilities strategically located throughout the U.S. and Mexico, is a leading manufacturer of trailer chassis for transporting maritime and railroad shipping containers, dump truck bodies and a wide variety of truck and specialty dump trailers. The trailer division services a growing number of industries that are dependent on heavy equipment, including construction, bulk commodity hauling, and municipal waste and landfill operations. Standard, through its Critical Components division, also manufactures precision fabricated and machined components for the aerospace, nuclear, and industrial equipment sectors, as well as the military and government markets.

    This release contains certain forward-looking statements which involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance, and achievements of the Company to be materially different from the results, performance or expectations of the Company. These factors may include, but are not limited to those detailed in the Company's periodic filings with the Securities and Exchange Commission.