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U.S. Automotive Manufacturing Sees Financial Results Below Expectations

5 November 1999

U.S. Automotive Manufacturing, Inc. Sees Third Quarter and 1999 Financial Results Below Expectations

    NEW YORK, Nov. 4 -- U.S. Automotive Manufacturing, Inc.
reported that sales for the third quarter were materially below
management's expectation and that the Company expects to report a loss for the
third quarter ended September 30, 1999.  Additionally, the Company now
anticipates that it will report sales between $28,000,000 and $30,000,000 and
incur a net loss for the year ended December 31, 1999, since its last quarter
of the year (ended December 31st) is historically one of its weakest.
    According to Mr. Martin Chevalier, the Company's CEO, "The road to a full
and permanent turnaround is rarely a straight-line."  He noted that "the
productivity problems that had plagued the Florida facility appeared to be
under control."  He added that "weakness in sales, however, first seen in the
end of the second quarter, unexpectedly continued through the third quarter."
Sales of the third quarter were down more than 20% when compared to the second
quarter of 1999 and more than 5% lower than the comparable quarter ended
September 30, 1998.  Mr. Chevalier noted that "the Company has analyzed its
order flow and believes such level, over-all, to be reflective of its
customers maintaining leaner inventories."
    Mr. Chevalier concluded by stating that, "For the past two years the
Company has to build capacity before booking new business."  He continued,
"The Company positioned itself for continued growth and the material downturn
in volume leaves the Company, in the short term, with an inability to absorb
all of the new overhead expense."  He concluded by stating that "management is
working to restore the balance between capacity and demand."
    U.S. Automotive Manufacturing, Inc., through its wholly owned
subsidiaries, Quality Automotive Company and U.S. Automotive Friction, Inc.,
manufactures, assembles and distributes new and rebuilt automotive products
(brake pads, linings and remanufactured brake shoes) to other automotive
manufacturers and to the automotive after-market.  The Company intends to
position itself to compete more formidably in the manufacture and sale of
friction materials as well as other "under car" automotive parts through both
acquisition and internal growth.

    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The Statements which are not historical facts contained herein are
forward-looking statements that relate to plans for future activities.  Such
forward-looking information involves a number of important 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 of the Company expressed or
implied by such forward looking statements.  Such risks, uncertainties and
factors, include, but are not limited to, those relating to the integration of
recently acquired companies, industry competition, the ability of critical
third parties to be Year 2000 compliant, the possible need for future
financing and possible obsolescence of equipment and other risks detailed in
the Company's filings with the Securities and Exchange Commission.  The words
"believe," "expect," "intend," "plan" and similar expressions identify
forward-looking statements.  Readers are cautioned not to place undue reliance
on these forward-looking statements, which only speak as of the date the
statement was made.