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Karts Announces the Relocation of Its USA Industries, Inc. Subsidiary

19 January 2000

Karts International Announces the Relocation of Its USA Industries, Inc. Subsidiary

    ROSELAND, La.--Jan. 18, 2000--Karts International Incorporated (OTC BB:KINT) announced today that it is relocating the manufacturing operations of its subsidiary, USA Industries, Inc. ("USA") to Roseland, Louisiana.
    Charles "Chuck" Brister, President and Chief Executive Officer of the Company, stated that the operation will be moved into a new 30,000 sq.ft. facility located close to the corporate offices and its other manufacturing facility in Roseland. "During 1999, the Company implemented a reorganization plan that consolidated its operations, streamlined its staffing and reduced its operating costs. The relocation of the USA manufacturing operation is the final step planned in the reorganization effort and will allow the Company to centrally buy and warehouse its raw materials and parts, consolidate its freight management and eliminate redundant equipment and manpower in underutilized departments."
    Mr. Brister went on to say, "The USA kart line has been very well received in the marketplace and we expect its growth to continue to outpace the industry. USA's management team will handle the relocation and be responsible for the operation of the new plant. It is anticipated that the move will be completed by mid-April and that USA's customers will not be negatively impacted."
    Karts International Incorporated, through its three wholly owned subsidiaries, Brister's Thunder Karts, Inc., USA Industries, Inc. and Straight Line Manufacturing, Inc. is one of the largest manufacturers of recreational go-karts in the United States.

    The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward looking statements are reasonable, it can give no assurance that such expectations or any of its forward looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.