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LONG ISLAND CITY, NEW YORK, August 23, 1996 -- Brake Headquarters U.S.A. Inc. (Nasdaq:BHQU) (the "Company") reported its unaudited results of operations for the quarter ended June 30, 1996 (the "Second Quarter"). Sales for the Second Quarter were $9,572,400 as compared to $9,028,725 for the quarter ended June 30, 1995, an increase of $543,675 or 6.0%. The Company reported a net loss of $30,654 compared to $325,122 for the quarter ended June 30, 1995. Sales for the period ended June 30, 1995, an increase of $18,018,775 as compared to $16,112,941 for the six months ended June 30, 1995, an increase of $1,905,834 or 11.8%. The Company reported net income of $54,791 for the six months ended June 30, 1996 compared to $546,659 for June 30, 1995. The reduction in earnings was primarily a result of the settlement of an action against a former customer of $212,000.
The Company also announced on August 14, 1996, it completed a $1,125,000 private placement of 450,000 units, at a purchase price of $2.50 per unit. Each unit consisted of one share of common stock and two three-year redeemable common stock purchase warrants, each to purchase one share of the Company's common stock, at an exercise price of $3.80 per share. The net proceeds of the placement will be used by the Company for expansion of the business through additional distribution centers, the purchase of a state of the art computer system and for working capital purposes. G-V Capital Corp. acted as placement agent for the private placement. Press Release for June 5, 1996