Automotive Performance Group, Inc. Announces Sale of Interest in Scandia Bodine Racing, LLC and Agreement in Principle to the Sale of Team Scandia.

TEMPE, Ariz.--(BUSINESS WIRE)--Jan. 11, 1999--Automotive Performance Group, Inc. (OTC BB:RACG), a full-service owner and operator of high performance automotive businesses and brands, announced today that it has completed the sale of its 50% interest in Scandia Bodine Racing, LLC for an undisclosed sum.

Dean M. Willard, Chairman and Chief Executive Officer of APG, stated, "We are pleased to announce the sale of our interest in Scandia. This transaction is part of our nearly completed effort to eliminate active participation and management of racing activities from the businesses of APG. We have made many notable accomplishments in racing including winning the 12 Hours at Sebring and other NHRA and IRL competitions, but feel that our assets and management talent are most profitably utilized in our other product and brands activities.

"APG can now more fully turn attention to the operation of our high performance synthetic lubricants sold under the brand name Royal Purple, our high performance engine and specialty engine components business operated as Klein Engines and to the acquisition of other business properties in the area of specialty chemicals for automotive and aerospace application," Willard concluded.

Automotive Performance Group, Inc. is a full service owner and operator of high performance automotive businesses including Royal Purple Motor Oil, which produces synthetic oil and chemical products favored by many racing teams and manufacturers, and Klein Engines and Competition Components, Inc., a leading manufacturer of high performance engines.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties which may affect Automotive Performance Group's business and prospects and cause actual results to differ materially from these forward-looking statements.