AQM Announces Q2 Sales and Profits

28 July 2000

AQM Announces Q2 Sales and Profits

    WOODBRIDGE, Ontario - AQM Automotive Corporation today announced its consolidated financial and operating results for the second quarter of 2000 (March 1, 2000 to May 31, 2000) and for the six months ended May 31, 2000.

    Sales volumes for the 2nd quarter increased by 18% or $651,238 over the 2nd quarter of 1999, to $4,299,967. This increase was caused by continuing success of the Company's marketing efforts. Sales for the six months ended May 31, 2000 were $8,129,136 up 20% from the previous year.

    Earnings before interest, taxes, depreciation and amortization , for the 2nd quarter of 2000 were $365,348 (3.5 cents per share), up 73% from the $210,654 reported for the 2nd quarter of 1999. For the six months ended May 31, 2000, EBITDA was up 21% to 514,591, or 5.0 cents per share.

    Net income for the 2nd quarter of 2000 was $168,284 (1.6cents per share), up 87% from the previous year.. For the six months ended May 31, 2000, net income was $217,150 (1.6 cents per share), up 25% from the same period in 1999.



             2nd Quarter Ended 6 Months Ended May 31st '00 May 31st
           '99 May 31st '00 May 31st '99
---------------------------------------------------------------
Sales         4,299,967    3,648,729    8,129,136     6,787,198
Gross Profit  1,044,884      969,434    1,872,530     1,787,705
Gross Profit
 Margin           24.3%        26.6%        23.0%         26.3%
EBITDA          365,348      210,654      514,591       424,611
Net Income      168,284       89,759      217,150       173,957
EBITDA per
 share        3.5 cents    1.9 cents    5.0 cents     3.9 cents
Net Income
 Per Share    1.6 cents    0.8 cents    2.1 cents     1.6 cents

AQM Automotive Corporation is a publicly traded, Canadian based holding company whose shares are listed on the Toronto Stock Exchange and the Nasdaq OTC Bulletin Boards. G.K. Industries Ltd. (G.K.I.) is the operating component of the AQM group of companies, and one of the leading companies of its kind in North America. The Company procures, packages and distributes automotive parts, including fuel filters, automatic transmission filter kits, breather elements and cabin air filters. Approximately 70% of annual sales are exported, primarily to the United States. Sales are across the spectrum of the automotive aftermarket industry, including national brand name filter companies, retailers, program distribution buying groups, traditional warehouse distributors and undercar specialty networks. As the total automotive market continues to consolidate, we are increasing our sales efforts to retail chains and large traditional distribution networks. Growing our market share of these segments is our goal.