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Qvale Automotive Group and DeTomaso Dissolve Agreement

17 March 2000

Divorce Italian Style: Qvale Automotive Group and DeTomaso Dissolve Agreement DETOMASO LOGO DeTomaso logo. (PRNewsFoto)[KI] LOS ANGELES, CA USA 01/06/2000    

    MODENA, Italy, March 17 Effective immediately, Bruce
Qvale, President and CEO of the Qvale Automotive Group, and Alejandro DeTomaso
have agreed to dissolve the licensing agreement signed by their respective
companies two years ago.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20000106/DETH010-a )
    Following the fruitful collaboration that has brought about the Mangusta,
DeTomaso Modena S.p.A. and Qvale Automotive Group S.r.l. have both decided to
follow separate paths.  The Mangusta, therefore, will no longer carry the
DeTomaso logotype.  Instead it will sport a new Qvale logo.
    The licensing agreement granted the Qvale Automotive Group the rights to
manufacture, distribute, and retail the DeTomaso Mangusta 2+2 sports car and
all future DeTomaso-branded vehicles throughout the world, with the exception
of Italy and the United Kingdom.
    With the dissolution of the agreement, the Qvale Automotive Group owns the
name "Mangusta" -- and will continue to manufacture and retail the exotic
sports car built at its Qvale Modena facility in northern Italy.  The Qvale
Automotive Group presently handles all of the manufacturing, quality control,
distribution, marketing, and retail sales of the 2000 Mangusta.  In effect,
the only thing that changes is the badging on the car.  In the future, the car
will be called a Qvale (pronounced Ka-Va-Lee) Mangusta.
    "We decided the time was right to accelerate our plans, now that Mangusta
production is fully underway," said Bruce Qvale.  "It was necessary to
liberate ourselves from the licensing agreement in order to take advantage of
some key markets that, under the agreement, had been denied to us.  Italy, our
home market, and the United Kingdom, are important and strategic sales areas
and we needed to be free to compete in those arenas.
    "You're witnessing the birth of a car company," continued Qvale.  "The
Qvale Automotive Group will continue to produce the Mangusta, and will market
the car as a Qvale Mangusta, replacing the DeTomaso brand with our own.  In
addition, all future products designed and produced by our Qvale Modena
facility will be badged Qvale.
    "We're certainly no strangers to the world of automotive manufacturing and
retail," said Qvale.  "We've been involved in all facets of the automotive
business for over 50 years.  In that time we've manufactured cars in England,
distributed everything from the Volkswagen Beetle to luxury brands like
Porsche, Audi and Maserati in the U.S., and, most importantly, we've sold over
a million cars."
    The announcement comes on the eve of the inaugural BFGoodrich Tires
Trans-Am Series race at Sebring International Raceway, in which Huffaker/Qvale
Motorsports will campaign a Qvale Mangusta, driven by series star Brian Simo.
    The Qvale Mangusta is an exotically styled, front-engine, rear-drive 2+2
sports car powered by a 4.6-liter Ford V8.  Its unique three-position
Rototop(TM) roof system allows it to be configured as a coupe, a targa, or a
convertible.  Selling for $78,900.00 U.S., the Qvale Mangusta delivers
performance, innovation and exclusivity in a package that evokes the best of
Italian style and design.