Bonded Motors' new propane engine receives certification from California Air Resources Board.

LOS ANGELES--(BUSINESS WIRE)--June 27, 1996--Bonded Motors Inc. (NASDAQ:BMTR) Thursday announced that as of June 5 its propane-fueled Powermaker 350 engine has been certified by Executive Order B-47-1 of the California Air Resources Board (CARB) and approved as a replacement engine for all 1993 and older General Motors 350 cubic-inch V8 engines, the mainstay of light- and medium-duty Chevrolet and GMC trucks.

CARB certification is mandatory before propane-fueled replacement engines can be widely distributed within the state of California. Bonded Motors' Compressed Natural Gas (CNG) powered GM 350 engine won CARB approval in March 1996.

"Propane has a much higher octane rating than gasoline and burns with lower emissions," said Aaron Landon, chief executive officer of Bonded Motors, one of the nation's largest remanufacturers of engines for cars and light trucks. "Our propane-fueled engine features a higher compression ratio of 11 to 1 compared to more normal 8 or 8.5 to 1, which provides both increased power and economy while at the same time having much lower emissions.

"Our engine is specifically designed to realize the full potential of propane as an alternative fuel. The problem with engines that have been converted to run both gasoline and propane is that they fail to take advantage of the very high octane of propane. Propane-fueled engines run cleaner which results in longer oil change intervals and engine life. Power output for the Powermaker 350 is 20 percent higher than a gasoline-fueled standard engine and, very importantly, fuel costs are significantly lower.

"We selected the Chevrolet/GM 350 cubic-inch V8 because it is the most widely used engine family in America; it has won more races than any other engine and it is absolutely the most known engine in terms of applications, maintenance and availability of parts. Dispatchers will tell you that divers do not like vehicles that utilize alternative fuel engines because of sluggish performance, but drivers do like our Powermaker 350 engine. This is the whole point. If you want people to drive low-emission vehicles, they have to be competitive in performance. Our target market for the Powermaker 350 are fleet vehicles, including light- to medium-duty trucks. We are offering a high performance, low-emission alternative to buying new vehicles.

"We believe that propane provides many advantages as an alternative fuel. There are approximately 10,000 fueling stations in the United States with a plentiful supply available and the ability to increase production when necessary. The United States, Canada and Mexico can supply all the propane needed to power a significant portion of all vehicles in the United States."

Bonded Motors also announced that is has also received CARB certification for operating the Powermaker 350 on compressed natural gas and is in the process of developing the Ford 460 V8 engine for CARB certification on both propane and CNG. The engine is now undergoing testing and is expected to be certified later this year. Like the Powermaker 350, the Powermaker 460 will be marketed primarily as a replacement engine for installation in fleet trucks, vans and buses whose original engines require complete rebuilding.

Bonded Motors is one of the nation's largest remanufacturers of car and light-truck engines. In addition to its manufacturing site in Los Angeles, it operates distribution centers in the states of Washington and Georgia and subsequent distribution centers are planned. Bonded Motors' principal customers are composed of discount automotive chains, including: The Pep Boys - Manny, Moe & Jack; Northern Automotive Corp.; Paccar Automotive; and Trak Auto Corp.

CONTACT: Bonded Motors Inc.

Paul Sullivan, 213/583-8631

or

Coffin-KCSA

John Muir, 818/789-0100