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Automotive Performance Group

24 May 2000

Automotive Performance Group Raises $750,000 Cash to Reduce Liabilities and Resolve Litigation

    NEW YORK--May 24, 2000--Automotive Performance Group, Inc. (OTCBB: RACGE) disclosed today it has raised $750,000 cash by selling a portion of its investment in PBT Brands, Inc., to several members of the Company's and PBT management and security holders. After the sale, APG's ownership in PBT's common stock was reduced from 22% to 18.1%.
    Proceeds from the sale will be used to reduce certain liabilities, resolve some outstanding litigation items, and for general corporate purposes. "We expect to reduce debt and settle several litigation issues at amounts that are advantageous to the Company," said APG's Chief Executive Officer, Dean M. Willard. "Currently, a combination of approximately $200,000 in cash and common stock has been used to settle more than $400,000 in liabilities."
    APG acquired a 22% equity ownership in PBT Brands last August. PBT was formed to acquire Loctite's automotive aftermarket business (Permatex) and Advanced Chemistry and Technology, Inc., which develops and manufactures sealants for the aerospace and aircraft industries. PBT has annual sales in excess of $130 million.
    "Our management's goal has been to eliminate the operating expenses of our Company, which includes an asset divestment program--which is nearly completed--and the favorable resolution of certain legal proceedings involving APG and its current and former subsidiaries," Mr. Willard added. "We expect to significantly reduce or eliminate our operating losses by the end of June."
    Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties which may affect Automotive Performance Group, Inc.'s business and prospects and cause actual results to differ materially from these forward-looking statements.
    Automotive Performance Group, Inc., participates in the fast-growing high-performance automotive and specialty chemical industries through its 18% equity ownership in PBT Brands Inc., a leading manufacturer, distributor, and marketer of premium functional chemical products to the automotive maintenance and repair markets, and Advanced Chemistry and Technology, Inc. (AC Tech), which develops and manufactures sealants for the aerospace and aircraft industry.