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Karts International Announces 1999 Results

1 April 2000

Revenues Increase by 46%

    ROSELAND, La.--Karts International Incorporated today reported results of operations for the year ended December 31, 1999.

    Net revenues for the year ended December 31, 1999 were approximately $12.0 million, a 46% increase over net revenues of $8.2 million for the same period last year. The Company reported an increase in gross profit of approximately $1.1 million to $0.7 million for the year ended December 31, 1999, compared to a gross loss of $(0.5 million) for the year ended December 31, 1998.

    For the year ended December 31, 1999, Karts reported net loss per share of $(0.42), a reduction of approximately 80% from the net loss per share of $(2.05) reported for the year ended December 31, 1998. The Company's net loss for the year was approximately $(2,366,000) compared to a net loss of approximately $(10,073,000) in 1998.

    "We are pleased with all that the Karts team was able to accomplish in 1999," said Charles "Chuck" Brister, President and Chief Executive Officer of the Company. "It was a challenging year that required a lot of work from the entire team to get this Company back on the right track. To have significantly increased sales and reduced costs while restructuring the organization and consolidating the operations is a real accomplishment. We are especially thankful for the support the Company received from its shareholders, vendors and customers."

    Brister stated that "With the introduction of our new Polaris kart line and expected continued growth in our existing product lines, year 2000 should be a record-breaking year for the Company. We have a number of opportunities in front of us this year and the team in place to take advantage of them."

           Karts International Incorporated and Subsidiaries
                       Summarized Financial Data

                                     For the year ended December 31,
                                           1999             1998
                                           ----             ----

Net revenues                       $ 11,997,800     $  8,219,600
Gross profit/(Loss)                     667,600         (480,600)
Operating expenses                    2,775,400        3,504,400
Other                                  (240,900)      (6,102,600)
Provision for income taxes               17,100          (14,800)
Net loss                           $ (2,365,900)    $(10,072,900)
Net loss per share                 $      (0.42)    $      (2.05)
Weighted average number
 of shares outstanding                5,574,298        4,920,702

 
                 Condensed Consolidated Balance Sheet

                                           1999             1998
                                           ----             ----
ASSETS
Current assets                       $5,467,000       $4,859,000
Net property and equipment            1,969,500        1,900,200
Other assets                            692,100          665,800
   Total assets                      $8,128,600       $7,425,000

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                  $5,685,300       $5,374,700
Long term debt                        1,766,100          242,400
Shareholders' equity                    677,200        1,807,900
   Total liabilities and
    shareholders' equity             $8,128,600       $7,425,000

    Karts International Incorporated, through its four wholly owned subsidiaries, Brister's Thunder Karts, Inc., USA Industries, Inc., Straight Line Manufacturing, Inc. and KINT LLC is one of the largest manufacturers of recreational go-karts in the United States.