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U.S. Automotive Manufacturing, Inc. Completes Refinancing

11 August 1999

U.S. Automotive Manufacturing, Inc. Completes Refinancing

    NEW YORK, Aug. 10 -- U.S. Automotive Manufacturing, Inc.
announced today that it has finalized its new three-year,
$15 Million Revolving Credit and Term Loan Agreement with IBJ Whitehall
Business Credit, as Agent.  Simultaneously with entering into the new
facility, the Company  fully retired its credit facility with LaSalle Business
Credit, Inc., its revolving credit facility with Galt Financial and a Small
Business Administration Term Loan.
    Under the new facilities, the Company has pledged substantially all of the
assets of the Company, including the stock of the Company's principal
operating subsidiary, Quality Automotive Company, as security to the Loans.
The Credit Agreement also contains a provision which restricts cash dividends
and covenants which create a minimum fixed charge coverage ratio and a minimum
net worth test.
    Martin Chevalier, President and CEO, stated that "the execution of the new
Senior financing  facility provides increased availability at a reduced cost".
He added that "the Company's cost of funds is expected to decrease by
approximately 125 basis points as compared to rates previously paid and that
the new agreement marked yet another milestone in the Company's turnaround".
Mr. Chevalier further stated that "he looked forward to a long and mutually
profitable relationship with the new lenders".
    U.S. Automotive Manufacturing, Inc., through its wholly-owned
subsidiaries, Quality Automotive Company and U.S. Automotive Friction, Inc.,
manufactures, assembles and distributes new and rebuilt automotive products
(brake pads, linings and remanufactured brake shoes) to other automotive
manufacturers and to the automotive after-market.  The Company intends to
position itself to compete more formidably in the manufacture and sale of
friction materials as well as other "under car" automotive parts through both
acquisition and internal growth.
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:  The Statements which are not historical facts contained herein are
forward looking statements that relate to plans for future activities.  Such
forward-looking information involves a number of important known and unknown
risks, uncertainties and other factors which 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.  Such risks, uncertainties and
factors, include, but are not limited to, those relating to the integration of
recently acquired companies, industry competition, the ability of critical
third parties to be Year 2000 compliant, the possible need for future
financing and possible obsolescence of equipment and other risks detailed in
the Company's filings with  the Securities and Exchange  Commission.  The
words "believe," "expect," "intend," "plan" and similar expressions
identifying forward-looking statements.  Readers are cautioned not to place
undue reliance on these forward-looking statements, which only speak as of the
date the statement was made.