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CRAGAR Industries, Inc. Completes Inventory Transaction With PDK, Inc.

12 June 2000

CRAGAR Industries, Inc. Completes Inventory Transaction With PDK, Inc.

    PHOENIX - CRAGAR Industries, Inc. today reported that it has completed a 
transaction with PDK, Inc. of Merrillville, Indiana whereby PDK will acquire 
almost all of CRAGAR's remaining inventory of custom wheels and wheel 
accessories.  Under the terms of the Agreement, PDK Inc. will purchase those 
products that had not been previously acquired by Weld Racing, Inc. and Carlisle 
Tire & Wheel Company.  Further, PDK, Inc. will serve as a clearinghouse for all 
CRAGAR brand one-piece cast aluminum wheels and certain other CRAGAR products.  
The other terms of the transaction were not disclosed.

    Michael L. Hartzmark, CRAGAR's CEO, stated, "PDK, Inc. is a leading
warehouse/distributor of custom wheels and wheel accessories.  Being located
in the middle of the United States puts them in a perfect position to supply
retailers and other warehouse/distributors with 'hard to find' CRAGAR products
and provide information on all CRAGAR products.  This transaction will enable
consumers to continue to purchase wheel products not currently licensed to
Weld Racing, Inc. and Carlisle Tire & Wheel Company."

    Phil Potocki, President of PDK, Inc. stated, "CRAGAR's strong brand equity
and reputation for quality products and PDK's leading position in middle
America for distributing aftermarket wheels is a winning combination.  We are
very pleased to work closely with CRAGAR as we continue to grow our business."

    CRAGAR Industries, Inc. is an international licensor of custom wheels and
wheel accessories for cars, trucks, vans, sport utility vehicles, racing
vehicles, and motorcycles.

    This release includes statements, which may constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.  Forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified.  Future events and actual results could differ
materially from those set forth in, contemplated by, or underlying the
forward-looking statements.  Please refer to the Risk Factors in the Company's
filings with the Securities and Exchange Commission, which identify certain
important factors that could cause the actual results to differ materially
from those contained in our forward-looking statements.  These factors
include, but are not limited to, the bankruptcy of the Company's primary
customer, dependence on external financing, product availability, market
conditions, as well as general economic conditions.