Company Has Received Tenders Representing 98.6% of Its Outstanding Senior Subordinated Notes

EXETER, Pa., March 17, 2011 /PRNewswire/ -- Keystone Automotive Operations, Inc. along with its subsidiaries and affiliates ("Keystone" or the "Company") announced today the extension of its previously announced exchange offer and consent solicitation (the "Offer") with respect to any and all of its 9 3/4% Senior Subordinated Notes due 2013  (CUSIP No. 49338PABO) (the "Senior Subordinated Notes").  The expiration date of the Offer has been extended to 5:00 p.m., New York City time, on March 28, 2011 (the "Expiration Date"), unless further extended or earlier terminated. 

As of 5:00 p.m., New York City time, on March 16, 2011, the Company has received tenders with respect to approximately 98.6% of the outstanding Senior Subordinated Notes. Accordingly, the Company intends on pursuing its out-of-court recapitalization plan.  "We are very pleased with the current progress of the exchange offer and look forward to finalizing our recapitalization plan out-of-court," said Ed Orzetti, President and Chief Executive Officer of Keystone.

Any holder who has not validly tendered its Senior Subordinated Notes pursuant to the terms of the Offering Memorandum and Disclosure Statement dated February 15, 2011 (as supplemented, the "Offering Memorandum and Disclosure Statement") may participate in the Offer by validly tendering its Senior Subordinated Notes in accordance with the terms of the Offer prior to the Expiration Date.  While the Offer has been amended to extend to the Expiration Date, withdrawal rights have not been extended.  Withdrawal rights terminated at 5:00 p.m., New York City time, on March 16, 2011.  All other terms of the Offer are unchanged.

Additionally, the Company announced today the extension of its previously announced rights offering in an aggregate amount of $60 million (the "Rights Offering").  The expiration date of the Rights Offering will now be 5:00 p.m., New York City time on March 18, 2011, unless further extended or earlier terminated.  

The Offer is made only by, and pursuant to, the terms set forth in the Offering Memorandum and Disclosure Statement, and the information in this press release is qualified by reference to the Offering Memorandum and Disclosure Statement and the accompanying Letter of Transmittal.  This press release is neither an offer to sell nor the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.  This press release is also not a solicitation of consents to the proposed amendments to the indenture governing the Senior Subordinated Notes.  Any questions or requests for additional copies of the Offering Memorandum and Disclosure Statement or related documents may be directed to the information agent and exchange agent, The Garden City Group, Inc. at (888) 476-7159.

About Keystone Automotive

Keystone Automotive Operations, Inc. and its affiliates are wholesale distributors and retailers of aftermarket automotive accessories and equipment, with operations servicing customers in all regions of the United States and provinces of Canada, as well as various other international locations.  The Company's fleet of over 300 trucks provide multi-day per week delivery and returns covering the 48 contiguous states and nine provinces of Canada.  The Company sells and distributes specialty automotive products, such as light truck/SUV accessories, car accessories and trim items, specialty wheels, tires and suspension parts, and high performance products to a fragmented base of approximately 15,000 customers.  The Company's wholesale operations include an electronic service strategy providing customers the ability to view inventory and place orders via its proprietary electronic catalog.  The Company also operates 20 retail stores in Pennsylvania.  The Company's corporate headquarters is in Exeter, Pennsylvania.

Forward-Looking Statements

Statements in this release that are not purely historical facts, including statements about forecasted financial projections or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be 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.  Readers are cautioned not to place undue reliance on forward-looking statements.  All forward-looking statements are based upon information available to the Company on the date this press release was submitted.  The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements.

SOURCE Keystone Automotive Operations, Inc.