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CRAGAR IndustriesEnters Into Arrangement With WELD RACING

4 October 1999

CRAGAR Industries, Inc. Enters Into Licensing Arrangement With WELD RACING, Inc.

    PHOENIX, Oct. 1 -- CRAGAR Industries, Inc.
(OTC Bulletin Board: CRGR) today reported that it has entered into a licensing
arrangement with WELD RACING, Inc., a privately held corporation.  Under the
terms of the Asset Purchase and Licensing Agreements, which still need
approval from certain parties, WELD RACING will be granted an exclusive
license to manufacture, market, distribute and sell CRAGAR's well-known line
of wrought aluminum automobile, light truck and racing wheels.  In return for
this license, WELD RACING will pay CRAGAR a continuing royalty based on sales
levels.  In 1998, sales of CRAGAR's wrought aluminum wheels and related
accessories represented approximately $2.5 million or 18% of CRAGAR's gross
revenues.
    Michael L. Hartzmark, President and CEO, stated, "We sought a licensing
partner that could cost-effectively manufacture and sell our wrought aluminum
wheels and related accessories.  WELD RACING's extraordinary technological
achievements over the past few years, its leadership position in the wrought
aluminum wheel niche and its well-known brand name, make it the natural
partner to grow CRAGAR's wrought aluminum wheel business."   Dr. Hartzmark
continued, "Our most valuable asset is our brand name, which will be enhanced
by this transaction.  This partnership will let a vertically integrated
manufacturer of high quality forged alloy wheels take a portion of our wheel
line to the market, while we focus our time, effort and resources on extending
the CRAGAR brand name through licensing arrangements into other domestic
performance automotive niches."
    Greg Weld, President and Chief Executive Officer of WELD RACING, Inc.,
commented further, "This arrangement gives WELD RACING one of the premier
brand names in our industry, as well as an established product line and
customer base developed over the past 35 years.  Combining the CRAGAR brand
and the well respected WELD RACING brand, as well as our diverse product
lines, will enable WELD RACING to devote more resources to R&D, new products
and the extension of the CRAGAR brand into newer technologies, including
motorcycle wheels.  In addition, as a more effective competitor in the
automotive wheel industry, we will be able to improve our methods of sales and
significantly expand our distribution."  In conclusion, Mr. Weld summed up,
"This partnership will help WELD RACING achieve its goal of becoming the
dominant player in the manufacture and sale of aftermarket wrought aluminum
automobile, light truck, racing and motorcycle wheels."

    CRAGAR Industries, Inc. is an international designer, producer, and seller
of custom wheels and wheel accessories for cars, trucks, vans, sport utility
vehicles, racing vehicles, and motorcycles.

    This release includes statements that may constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.  Forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified.  Future events and actual results could differ
materially from those set forth in, contemplated by, or underlying the
forward-looking statements.  Please refer to the Risk Factors in the Company's
filings with the Securities and Exchange Commission, which identify certain
important factors that could cause the actual results to differ materially
from those contained in our forward-looking statements.  These factors
include, but are not limited to, the bankruptcy of the Company's primary
customer, dependence on external financing, product availability, market
conditions, as well as general economic conditions.  In addition, completion
of this transaction is subject to a number of conditions and there is no
assurance that the licensing arrangement will be completed successfully.
Assuming the transaction is completed successfully, there is no assurance that
WELD RACING, Inc. will be able to successfully sell the licensed products,
which could have a material adverse effect on the royalties due to Cragar
Industries, Inc.