Appointment of President/Finalization Clockwork Acquisition.

CARLSBAD, Calif.--(BUSINESS WIRE)--Oct. 27, 1998--CARV INDUSTRIES, INC. ("CARV") NASDAQ/OTCBB: CARV announced today the appointment of new President and CEO Frank Drechsler co-founder of XSPORTS, Frank Drechsler has been in the action sports industry since 1992.

Mr. Drechsler is an ideal selection for a permanent president due to his strong extreme sports and e-commerce background. The board of directors of CARV determined that its search would be limited to internal divisions and to individuals who are familiar with the company's direction and long term plans. Mr. Drechsler comes from CARVS internet division, XSPORTS (www.skatesurfsnow.com) and (www.carv.com). Mr. Drechsler has demonstrated a strong ability to develop this e-commerce division of CARV, which shall play a major role in the future of the company. Mr. Drechsler replaces interim president Peter Willis.

Since his appointment, on October 1, 1998, Mr. Drechsler's first order of business has been to finalize the Clockwork acquisition, which has now been completed. Clockwork, a skateboard manufacturer, is currently fulfilling its holiday orders. Profitable in 1997, Clockwork anticipates sales and profitability to increase dramatically in 1998.

In addition to the completion of the Clockwork acquisition, CARV entered a management contract with Eben Woodall Director of sales of Clockwork and who will become Vice President and Director of Sales for CARV. Eben Woodall was the former Sales Director for the Skateboard Division of Bravo Corporation. His marketing capabilities, intense focus on the market and his experience in the industry will prove to be a valuable asset in the future of CARV.

In the last two-weeks, Mr. Drechsler and his staff have done a complete review of the company's current financial condition and have implemented much cost saving measures. Due to the current economic climate, CARV feels that it is in the company's best interest to minimize its overhead, focussing only on those divisions that maintain profitability with limited exposure. Thus, CARV will be re-evaluating each division and/or proposed acquisition, then take appropriate action to dissolve, unwind or re-organize those that do not maximize or fit with the company's long term goals.

When asked about 1999 prospects, Mr. Drechsler said, "With the elimination of unprofitable subsidiaries and our focus on internet/XSPORTS expansion, I expect 1999 to be a year of significant revenue and profit growth."

On behalf of the Board of Directors,

Frank Drechsler President, CEO

For more information, please call toll free 1-888-339-CARV

This news release may contain forward-looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Company's customers. Actual results and developments may therefore differ materially from those described in this release. The OTC BB has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.

OTC Bulletin Board: Symbol CARV

Toll Free Tel:[phone]

Website: www.carv.com