Standard Automotive Expects Q2 to be Below Analysts' Estimates

9 September 1999

Standard Automotive Corporation Expects Earnings for Second Quarter to be Below Analysts' Consensus Estimates; Acquisition of Olympic Tool and Engineering to Close Within 60 Days

    HILLSBOROUGH TOWNSHIP, N.J.--Sept. 9, 1999-- Standard Automotive Corporation (AMEX:AJX, AJXPR) (the "Company" or "Standard") announced today that it anticipates second-quarter earnings to be below analysts' consensus expectations primarily because of production start up delays at its recently established manufacturing facility in Sonora, Mexico and the Company's decision not to consummate certain intended acquisitions.
    While the Company's order volume remains very strong and it continues to operate at capacity, second-quarter forecasts for trailer chassis production output in Mexico will be lower than expected. Also, second-quarter forecasts included certain acquisitions accretive to earnings that the Company decided not to consummate.
    The reduced production output in Mexico is attributable to delays associated with getting a new manufacturing facility fully online. Steven Merker, Standard's Chairman and Chief Executive Officer said, "We are aggressively working toward enhancing production output in Mexico, which includes the appointment of several key employees to oversee this objective, and are pleased to report that productivity has already significantly improved."
    Merker noted, "Although our second-quarter forecasts have been hampered by production delays in Mexico and our decision not to proceed with certain intended acquisitions, we do not want this to obscure the fact that we have experienced exceptional internal sales growth and are pleased that our revenues and earnings will be well ahead of last year."
    Further, the Company announced that it has signed a definitive agreement to acquire Olympic Tool and Engineering located in Seattle, Washington. The transaction is expected to close within 60 days and will be accretive to earnings immediately.
    Olympic is a precision manufacturer of aircraft components, heavy fabrications and complex assemblies primarily for the aerospace and nuclear industries, as well as the military. Merker concluded, "Olympic fits well within our Critical Components Division and we anticipate significant synergy between Olympic and Ranor, Inc."
    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/truck body group 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.