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EQUITY INVESTMENT IN VECTOR AEROMOTIVE CORP. ANNOUNCED; VECTOR W8 FEATURED ON COVER OF ROAD & TRACK

 EQUITY INVESTMENT IN VECTOR AEROMOTIVE CORP. ANNOUNCED;
 VECTOR W8 FEATURED ON COVER OF ROAD & TRACK
 WILMINGTON, Calif., Aug. 6 /PRNewswire/ -- Vector Aeromotive Corp. (NASDAQ: VCAR) today announced that Eagle Holdings Ltd., a Channel Island corporation, has purchased 2 million common shares of Vector Aeromotive Corp. for a $1 million purchase price, or $.50 per share. Vector and Eagle Holdings Ltd. have entered into a letter of intent pursuant to which Eagle has expressed its intention to purchase an additional 2 million shares for a purchase price of $1 million. The letter of intent also describes the terms of an option pursuant to which Eagle may purchase up to an additional 6 million common shares of Vector for a total purchase price of $3 million at any time during 12 months from the date of the closing of the purchase of the second 2 million shares.
 Commenting on this development, Gerald A. Wiegert, president of Vector, stated, "We at Vector Aeromotive are very pleased to have secured the private placement investment by Eagle Holdings Ltd. and to have advanced our ability to produce the Vector line of exotic sports cars." Tooling underway on the company's latest supercar, the Avtech WX3, will be accelerated so that the new supercar, which debuted at the 1992 Geneva Auto Show, can be in the company's 1993 model lineup. Eagle's investment intent also demonstrates Vector's worldwide appeal and, because Eagle's principal operations are located in Indonesia, Vector anticipates that it may be able to capitalize on new opportunities in the Far East.
 As a result of the investment in Vector Aeromotive by Eagle, Eagle now owns approximately 15.7 percent of the outstanding shares of Vector and, on completion of the purchase of the second 2 million share increment, will own approximately 27 percent of the outstanding shares of Vector. At the closing, which is expected to be held within 90 days, Eagle will also be granted one seat on the board of directors of Vector, registration rights for the shares purchased and will be issued the option to purchase an additional 6 million common shares for a total purchase price of $3 million. The closing of the second 2 million share increment is subject to execution of a definitive purchase agreement.
 Vector Aeromotive Corp. is the only U.S.-based manufacturer of exotic sports cars priced in excess of $250,000. The Vector W8 is sold internationally and now retails for approximately $448,000. The Vector W8 is featured on the cover of the August 1992 Road & Track magazine. The Vector Avtech WX3 is expected to carry a higher retail price of $765,000 for its top-of-the-line, 7-liter, fully optioned model which is expected to be available in 1993.
 -0- 8/6/92
 /CONTACT: Gerald Wiegert, president of Vector Aeromotive, 310-522-5500/
 (VCAR) CO: Vector Aermotive Corp. ST: California IN: AUT SU:


JL -- LA016 -- 7576 08/06/92 11:53 EDT
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Publication:PR Newswire
Date:Aug 6, 1992
Words:485
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