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Glas-Aire Announces Acquisition of Minority Interest in Regency Affiliates

12 August 1999

Glas-Aire Industries Group Ltd. Announces the Acquisition of a Minority Interest in Regency Affiliates, Inc.

    VANCOUVER, British Columbia, Aug. 12 -- Glas-Aire Industries
Group Ltd. ("Glas-Aire" or the "Company") , a
leading designer, developer, manufacturer and marketer of original equipment
automotive wind deflector accessories to automobile manufacturers world-wide,
announced that, through two separate transactions, it has acquired 26.092% of
Regency Affiliates, Inc. ("Regency"), (OTC Bulletin Board: RAFF), thus
becoming Regency's largest shareholder.  On July 13, 1999, the board of
directors of Glas-Aire approved the acquisition of 1,188,000 shares of common
stock of Regency valued at $.88 per share from an individual investor for
consideration of 288,000 shares of Glas-Aire valued at $3.63 per share.  Also
on July 13, 1999, the board of directors of Glas-Aire approved the acquisition
of 2,852,375 shares of common stock of Regency at a value of $.80 per share
for consideration of 86,000 shares of Glas-Aire common stock, valued at $3.65
per share, and $1,968,000 in cash.
    Alex Ding, President of Glas-Aire stated, "Glas-Aire needs to be a more
substantial company to secure financing that would be necessary for the
Company to pursue acquiring other businesses.  By acquiring 26.092% of the
outstanding shares of common stock of Regency, Glas-Aire has increased both
its earnings and net worth at a valuation that improves earnings per share."

    Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995.  Such forward-looking statements
involve 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
expressed or implied in such forward-looking statements.  Additional
discussion of factors that could cause actual results to differ materially
from management's projections, forecasts, estimates and expectations is
contained in the Company's SEC filings.