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U.S. Automotive Manufacturing Announces Potential Investment

11 May 2000

U.S. Automotive Manufacturing, Inc. Announces Potential Strategic Investment in its Shares

    NEW YORK, May 10 U.S. Automotive Manufacturing, Inc. reported that the
previously announced letter of intent with Satisfied Brake Products has been
terminated and that the Company had, effective May 9, 2000, entered into a
letter of understanding with another strategic investor, FDP Brakes, Inc.
("FDP").
    FDP Brakes, a privately owned Company, with facilities in Pennsylvania and
New Jersey, is a manufacturer of automotive brake parts, and is a tier one
vendor for original equipment manufacturers.  Due diligence is expected to be
concluded within the next ten days.  Subject to the satisfactory completion of
due diligence, discussions will be held with the holders of the
Reg S Debentures and affiliated notes.  These discussions are anticipated, in
the context of an FDP investment, to result in the reorganization of the
liability and capital accounts of the Company.  Subject to agreement and
acceptable documentation among the parties, FDP, or a group it will represent,
has expressed the intent to invest up to $7,000,000 in cash, inventory and
process equipment into the Company, in exchange for 2/3rd ownership in the
reorganized Company.
    Martin Chevalier, President and CEO of USAM, stated that while he was
personally disappointed that the Company had not found common ground with the
previously announced strategic investor, "USAM was gratified by FDP's belief
in our Company and its prospects."  Mr. Chevalier noted that while "there are
no overlapping markets between USAM and FDP, the two Companies had discussed
various joint venture opportunities over the last several years."  He said
that "FDP is known for their formulations and processes and working with them
in improving and upgrading the Company's production facilities is a
cornerstone of this venture."
    Mr. Chevalier concluded by stating that, "I have known the principals
involved in the FDP operation for over seventeen years.  I cannot think of a
better strategic partner for our Company."