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AQM Announces Normal Course Issuer Bid to Commence Sept 2, 1999

31 August 1999

AQM Announces Normal Course Issuer Bid to Commence September 2nd, 1999

    WOODBRIDGE, Ontario--August 31, 1999--AQM Automotive Corporation announced today that the Toronto Stock Exchange has accepted the Company's notice to make a normal course issuer bid to purchase, from time to time as it considers advisable, up to 500,000 of its issued and outstanding Common Shares for cancellation.
    These purchases will be made on the open market, through the facilities of the Toronto Stock Exchange. The price which AQM will pay for any shares purchased by it will be the prevailing market price of such shares on the Toronto Stock Exchange at the time of such purchase.
    There are currently 10,339,368 Common Shares of the Corporation outstanding. 499,500 Common Shares were purchased by the Corporation over the prior year under a Normal Course Issuer Bid at an average price of $0.25 per Common Share.
    The Bid will commence on September 2nd, 1999 and will terminate on September 1st, 2000 or such earlier time as the Bid is completed or terminated at the option of AQM.
    The Company believes that the current and recent market prices of its common shares may not reflect their underlying value and that, at such times, the purchase of common shares will increase the proportionate interest of, and be advantageous to, all remaining shareholders. Any normal course purchases made by AQM will also afford an increased degree of liquidity to those shareholders of AQM who wish to dispose of their common shares.
    AQM Automotive Corporation is a publicly traded, Canadian based holding company whose shares are listed on the Toronto Stock Exchange and the Nasdaq OTC Bulletin Boards. G.K. Industries Ltd. (G.K.I.) is the operating component of the AQM group of companies, and one of the leading companies of its kind in North America. It is involved in the procurement, packaging and distribution of automotive fuel filters, automatic transmission filter kits, breather elements and cabin air filters. Approximately 70% of annual sales are exported, primarily to the United States. Sales are across the spectrum of the automotive aftermarket industry, including national brand name filter companies, retailers, program distribution buying groups, traditional warehouse distributors and undercar specialty networks. As the total automotive market continues to consolidate, we are increasing our sales efforts to retail chains and large traditional distribution networks. Growing our market share of these segments is our goal.