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CRAGAR Enters Into Arrangement With Performance Wheel Outlet

13 September 2000

CRAGAR Industries, Inc. Enters Into Licensing Arrangement With Performance Wheel Outlet, Inc.

    PHOENIX, Sept. 13 CRAGAR Industries, Inc.
(OTC Bulletin Board: CRGR) today reported that it has signed a definitive
agreement with Performance Wheel Outlet, Inc., whereby Performance will enter
into an exclusive licensing arrangement.  Under the terms of the Licensing
Agreement, Performance will be granted an exclusive license to manufacture,
market, distribute and sell CRAGAR's well-known line of one-piece cast
aluminum automobile and light truck wheels.  The terms of the transaction were
not disclosed.
    Michael L. Hartzmark, CRAGAR's President and CEO stated, "Our new partner,
Performance Wheel Outlet, and most notably Bob McMath, is an experienced
manufacturer, designer, marketer, seller and distributor of quality custom
wheels.  Mr. McMath has successfully navigated the custom wheel market during
some difficult time periods.  In addition to running his own wheel
manufacturing company, he has established supply relationships with wheel
factories throughout the world and selling arrangements with domestic and
overseas customers.  This arrangement will benefit our shareholders and
customers since CRAGAR one-piece cast aluminum wheels will now be sourced and
sold by a company with substantially greater capabilities in new product
development, vendor procurement, distribution, marketing and selling."  Dr.
Hartzmark also emphasized, "Our most valuable asset is our brand name, which
will be enhanced by this transaction.  This partnership will allow a well
connected company to enlarge our wheel line in the largest segment in the
industry, while we focus our time, effort and resources on extending the
CRAGAR brand name through licensing arrangements into other domestic
performance automotive niches."
    Robert McMath, President of Performance, stated, "CRAGAR's strong brand
equity and reputation for quality products and Performance's experience,
connections and worldwide reputation in the market for automotive aftermarket
wheels is a winning combination."