Permatex Acquires No Touch North America

4 April 2000

Permatex Acquires No Touch North America, Adding Unique Appearance Chemical Line to Its Product Portfolio

    HARTFORD, Conn.--April 3, 2000--Permatex, Inc. announced today it has acquired No Touch North America (Lake Forest, CA) from parent company Taiho Industries, Co., Ltd. (Japan). Terms were undisclosed. The acquisition will add approximately $10 million to Permatex revenues.
    No Touch is a market leader in tire and wheel care, an estimated $100 million market in North America. Its products are sold in leading retail, traditional, and mass merchant distribution channels.
    "This is a superb bolt-on opportunity for Permatex," commented Permatex President, Pat Formica. "No Touch's patented formula for its original one-step tire care product revolutionized the category in 1991. The company has been a technology and market leader in tire care ever since," he added.
    "Permatex has a large and well-established sales force, tremendous distribution strength, and excellent relationships with our customers. By adding a high quality appearance line like No Touch to our portfolio of leading automotive brands, we increase our ability to serve their needs," Mr. Formica explained in describing how the No Touch line would complement the Company's brand franchise products, which include such well-recognized brands as Permatex(R), the Right Stuff(R), and Fast Orange(R).
    Commenting on the acquisition, Permatex Chairman and Chief Executive Officer Dean M. Willard stated, "Our core growth strategies include introducing new products in the automotive aftermarket as well as reinvigorating the Permatex brand and associated products. Acquisitions will also play a key role in our growth."
    Permatex, a business unit of PBT Brands, Inc., serves the entire North American automotive aftermarket. It is owned mainly by private equity and debt investors. Automotive Performance Group (OTCBB: RACG), a publicly traded company, has a 22% equity ownership in Permatex.
    No Touch North America was founded in 1990 to introduce unique, high quality, efficient and environmentally safe car care products. No Touch North America's leading products include Original Tire Care, Premium Tire Care, Wet 'n' Protect, and Deep Purple. The company often commercializes technology developed by Taiho in Japan.
    Taiho Industries markets a number of innovative auto care products in Japan. Permatex and Taiho have agreed to collaborate on new technology.
    Permatex, which has annual revenues in excess of $130 million, markets and sells leading automotive repair and consumer products sold under a variety of well-recognized brand names such as Permatex(R), the Right Stuff(R), and Fast Orange(R). The Company is a recognized leader in most segments of the automotive aftermarket, with strong positions in retail and traditional market distribution channels.