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Karts Int'l Raises $3mm to Assist Turnaround

25 May 2000

Karts International Incorporated Announces Financing Transaction Completed

    ROSELAND, La.--Karts International Incorporated (OTCBB:KINT) announces that on May 17, 2000, the Company completed a transaction with the Schlinger Foundation which resulted in a financial restructuring of the Company.

    Charles "Chuck" Brister, President and Chief Executive Officer of the Company, reported that, "the Company sold 4,000,000 shares of its Series A Convertible Preferred Stock to the Schlinger Foundation ("Schlinger") for $3,000,000 or $0.75 per share. Additionally, Schlinger agreed to amend its current $1,500,000 convertible, subordinated debenture thereby removing the convertible feature and increasing the principle to $2,500,000."

    Mr. Brister stated that, "this transaction is significant for the Company in that it provides the means for management to finish the turnaround effort begun last year while substantially improving our financial strength, reducing our financing costs and providing us with the working capital needed to secure our position as the innovative leader in our industry."

    Brister went on to say that the Schlinger Foundation had been a strong supporter of the Company since its inception back in 1996, both as a lender and shareholder. Additional information regarding this transaction is detailed on a Form 8-K that was filed with the Securities and Exchange Commission on May 24, 2000.

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