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CRAGAR Industries Enters into Licensing Arrangement With Carlisle

19 October 1999

CRAGAR Industries, Inc. Enters into Licensing Arrangement With Carlisle Tire & Wheel Company

    PHOENIX, Oct. 18 -- CRAGAR Industries, Inc. reported that it has signed 
a definitive agreement with Carlisle Tire & Wheel Company ("Carlisle"), a 
wholly-owned subsidiary of Carlisle Companies Incorporated, whereby Carlisle
will acquire CRAGAR's specialty steel-based wheel assets and enter into an
exclusive licensing arrangement.  Under the terms of the Asset Purchase and
Licensing Agreements, Carlisle will be granted an exclusive license to
manufacture, market, distribute and sell CRAGAR's well-known line of
steel-based automobile and light truck wheels.  In addition, Carlisle has the
right to extend CRAGAR's line into other vehicle wheels such as those for golf
carts, ATV's and other motorized vehicles.  The terms of the transaction were
not disclosed.
    Michael L. Hartzmark, CRAGAR's President and CEO stated, "Our new partner,
Carlisle Tire & Wheel Company, is a leading manufacturer and distributor of
quality commercial, recreational and utility tires and wheels.  This
arrangement with one of the premier wheel manufacturers in the world will
benefit our shareholders and customers since CRAGAR steel-based wheels will
now be produced by a company with substantially greater capabilities in new
product development, manufacturing, distribution and selling."  Dr. Hartzmark
also emphasized, "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 steel-based wheels take a significant
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."
    Barry Littrell, Executive Vice President of Carlisle, stated, "CRAGAR's
strong brand equity and reputation for quality products and Carlisle's leading
position in the market for automotive aftermarket wheels is a winning
combination.  This acquisition will significantly broaden Carlisle's
capabilities and allow us to better serve our customers with the industry's
widest range of specialty wheels.  We are very pleased to have CRAGAR join us
as we continue to grow our business."
    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, which 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.