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Aftermarket Technology Signs Agreement to Sell Distribution Group

5 September 2000

Aftermarket Technology Corp. Signs Agreement to Sell Distribution Group

    WESTMONT, Ill., Sept. 5 Aftermarket Technology Corp.
today announced that it has signed an agreement to sell its
Distribution Group to an affiliate of The Riverside Company, an investment
firm that also owns another transmission repair parts business,
Aceomatic-Recon.  The purchase price of $77 million is comprised of
$65 million in cash and $12 million of Series B preferred stock (with a
present value of approximately $8 million).  The cash proceeds from the sale
will be used by the Company to retire senior debt.
    The transaction, which is subject to regulatory approval, the buyer
obtaining necessary financing and the completion of environmental diligence,
is expected to close in October 2000.
    Mike DuBose, ATC Chairman, President and CEO said, "Consistent with our
recently announced decision to exit the Independent Aftermarket segment, the
agreement to sell the Distribution Group is clearly in the best interests of
our stockholders.  The new, streamlined and focused ATC will have a solid
financial foundation comprised of strong cash flows, decreased levels of debt,
increasingly strong customer relationships, improved margins and good growth
prospects."
    DuBose commented further, "On a going forward basis, the sale of the
Distribution Group allows ATC to pay down approximately $60 million in debt
and results in a projected tax benefit of approximately $45 million, both of
which will further enhance ATC's financial foundation.  In addition, we can
now focus our efforts on growing and expanding our core businesses, with the
opportunity to further enhance margins and continue to improve earnings
growth.  As we have previously reaffirmed, we expect to achieve EPS of
$1.25 from continuing operations for 2000."
    "We believe that the combination of the Distribution Group with
Aceomatic-Recon should result in a stronger, more focused transmission parts
distribution business that will benefit Distribution Group customers and
employees in the long term."