UVSL Universal Automotive Industries - Common Stock (MM)

Universal Automotive Begins Second Phase of Integrating Acquisition -- Purchase of Assets in January from TRW Automotive Effectively Doubled Universal's Size -- ALSIP, Ill., May 5 /PRNewswire-FirstCall/ -- Universal Automotive Industries, Inc. today said it has begun the second phase of a planned program to integrate the operations of the assets it acquired from TRW Automotive, Inc. in January 2004, which effectively doubled Universal's size. Arvin Scott, Universal Automotive's president and chief executive officer, said, "The primary activity of phase two focuses on information technology and getting all operations on the same systems platform. Although ambitious, it is our objective to complete this critical phase by the summer of 2004." Scott said the initial phase of the integration process had been successfully completed ahead of schedule. It consisted of plant consolidations in Illinois and California, along with elimination of certain redundancies in administrative and other areas. He said Universal also identified certain products previously purchased by the TRW business from third party suppliers that it will be able to manufacture in its existing facilities. "Aside from doubling our size, the combination is expected to provide improved operating efficiencies and economies of scale," Scott said. "Moreover, customers will benefit from a significantly broader array of product offerings now available from one company, including recognized brand names, as well as private label products." Scott said that approximately $5 million in costs have been identified and are being taken out of the combined operations. He also said the number of stock keeping units (SKUs) has increased to more than 40,000 from less than 10,000 as a result of the acquisition. "While there is much hard work ahead, we are excited about what the future holds for Universal and confident about our long-term growth opportunities," Scott said. "Barring unforeseen circumstances, we anticipate steadily improving operating results, with a return to profitability over the next twelve months." About Universal Automotive Industries, Inc. Universal, headquartered in the Chicago area, specializes in the distribution and manufacture of brake rotors and other brake parts, under its trademarks UBP - Universal Brake Parts, Evolution and Ultimate in the United States and Canada and its proprietary Autospecialty, ValuMaxx and PowerStop brands. The company also provides TRW-branded brake rotors and drums and suspension products. This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements, including, but not limited to, realization of efficiencies from the consolidation of facilities and functions and achieving profitability within twelve months, involve known and unknown risks, uncertainties (including those risk factors referenced in the company's filings with the Securities and Exchange Commission), and other factors that may cause the actual results, performance or achievements of the company to be materially different from any future results, performance, or achievements of the company expressed or implied by such forward-looking statements. Universal Automotive Industries, Inc. Summary of Financial Results ($000's) except per share data Quarter Ended Year Ended December 31, December 31, 2003 2002 2003 2002 Net Sales Brake Parts $9,042 $12,998 $45,303 $62,568 Non-Brake Parts 3,322 1,643 14,000 7,288 Total $12,364 $14,641 $59,303 $69,856 Gross Margin: 1,248 1,904 7,538 12,326 10.1% 13.0% 12.7% 17.6% Selling, General and Administrative Expenses 2,092 1,844 9,415 10,317 Other Operating (Income) Expense 248 (63) 248 98 (Income) Loss from Hungarian operations 71 - 71 Income (loss) from operations $(1,092) $52 $(2,125) $1,840 Other expense (income) Interest Expense 284 291 1,057 1,398 Non-cash expense related to the issuance of warrants 648 648 Loss (Gain) on disposition of assets 39 (49) 6 (49) Other income (loss) (406) - (405) Income (loss) before provision (benefit) for income taxes $(2,469) $(190) $(4,241) $491 Income tax provision (benefit) - - - - Net Income (Loss) $(2,469) $(190) $(4,241) $491 Earnings (loss) per share Basic net income (loss) per common share $(0.29) $(0.02) $(0.51) $0.06 Diluted net income (loss) per common share $(0.29) $(0.02) $(0.51) $0.04 Weighted-average common shares outstanding 8,394,763 8,198,174 Effect of dilutive securities Conversion of preferred stock - 3,014,380 8,394,763 11,212,554 DATASOURCE: Universal Automotive Industries, Inc. CONTACT: Robert W. Zimmer of Universal Automotive Industries Inc., +1-708-293-4050, ext. 227, or Roger Pondel of PondelWilkinson Inc., +1-323-866-6006 Web site: http://www.universalbrake.com/ Company News On-Call: http://www.prnewswire.com/comp/133263.html

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