AQM Announces Record Sales for Q1 2000

21 March 2000

AQM Announces Record Sales for Q1 2000

    WOODBRIDGE, Ontario--March 20, 2000--(TSE:AQV.) (OTC BB:AQM.AF)

    Annual General Meeting of Shareholders on Tuesday May 2nd,
    2000 at New, Larger Facility

    AQM Automotive Corporation (AQM) today announced its consolidated financial and operating results for the first quarter of 2000, ended February 29, 2000.
    Sales volumes increased by 22% or $690,700 over the 1st quarter of 1999, to $3,829,169. Gross profit increased by $9,376, to $828,647. Earnings before interest, taxes, depreciation and amortization (EBITDA), were $149,243 (1.4 cents per share), down 30% from $213,957 reported for the 1st quarter of 1999. Net income for the quarter was $48,867 (0.5 cents per share), decreasing by 42% over the 1st quarter of 1999. Margins are expected to recover in the second quarter.


                                            First Quarter Ended
                                     29-Feb-00        28-Feb-99
---------------------------------------------------------------
Sales                                3,829,169        3,138,469
Gross Profit                           828,647          818,271
Gross Profit Margin                      21.6%            26.1%
EBITDA                                 149,243          213,957
Net Income                              48,867           84,198
EDITDA per share                     1.4 cents        2.0 cents
Net Income Per Share                 0.5 cents        0.8 cents

    The Company also wishes to announce that it will be moving to a larger, more efficient facility on May 1st. Greater sales volumes and the requirement for increased order processing efficiencies have resulted in the need for a larger facility. Jerry Stevens, Vice President of Sales, stated that "In this exciting, demanding marketplace, our objective is to continue improving our customer service levels."
    Commenting on the quarterly results, Mr. Leslie Leib, Chairman of the Company, stated he was confident that the Company's strategy of increasing market share will result in improved earnings. Finally, the Company wishes to announce that the Annual General Meeting of Shareholders of the Company will be held at 3:00 p.m. on Tuesday May 2nd 2000, at the Company's offices on 50 Precidio Court, in Brampton Ontario.
    AQM Automotive Corporation is a publicly traded, Canadian based holding company whose shares are listed on the Toronto Stock Exchange and the Nasdaq OTC Bulletin Boards. G.K. Industries Ltd. (G.K.I.) is the operating component of the AQM group of companies, and one of the leading companies of its kind in North America. The Company procures, manufactures, packages and distributes automotive parts, including fuel filters, automatic transmission filter kits, breather elements and cabin air filters. Approximately 70% of annual sales are exported, primarily to the United States. Sales are across the spectrum of the automotive aftermarket industry, including national brand name filter companies, retailers, program distribution buying groups, traditional warehouse distributors and undercar specialty networks. As the total automotive market continues to consolidate, we are increasing our sales efforts to retail chains and large traditional distribution networks. Growing our market share of these segments is our goal.
    The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. For further information, please contact Tim Nigh, Director. Toll Free 1-800-947-8621 Fax:(905) 851-2007

CUSIP No. 001949 10 6