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EXHIBIT 99(iii)
PRESS RELEASE ISSUED OCTOBER 17, 2000
PRESS RELEASE
[ANDERSON PARTNERS LOGO]
FOR IMMEDIATE RELEASE
For further information contact:
Scott Anderson
Anderson Partners
(402) 341-4807
[email protected]
UNIVERSAL MANUFACTURING FUELS
GROWTH WITH MERGER
"WIN-WIN" HELPS FIRM INCREASE MARKET SHARE AND REDUCE COSTS
ALGONA, Iowa, (Oct. 17, 2000) -- On the heels of record sales for fiscal
year 2000, Universal Manufacturing Co., (NASDAQ:UFMG) a leading Ford
automotive parts remanufacturing and distribution company, announced the
merger of its subsidiary, Universal Distribution, L.L.C., with one of the top
General Motors parts distributors in Iowa.
Universal Distribution and Rainbo Oil Company of Dubuque, Iowa, have
agreed to merge their parts distribution businesses and have formed a new
partnership. The name of this new partnership is Rainbo Company, L.L.C.
This combined operation will continue the distribution of Motorcraft (Ford),
AC Delco (GM) parts and other lines, and will continue to do business as
Value Independent Parts (VIP). VIP will be managed by Universal
Manufacturing. Universal Manufacturing Co. will continue to remanufacture
and distribute automotive parts to dealers and jobbers in the Midwest.
Universal's president, Donald D. Heupel, says the merger reflects the
company's strategy of rapid growth to increase distribution capacity and
sales territory, while taking advantage of operating efficiencies to cut
costs and improve profitability. "Consolidation is the watchword in our
industry. The market is demanding one-stop shopping and we're responding,"
says Heupel. "This merger is a win-win. It not only makes us more competitive
but also more profitable in the long-term."
1650 Farnam Street, Suite 1010 Omaha, NE 68102 402.341.4807
fax 402.341.2846 1.800.551.9737
email: [email protected] http:\\www.andersonpartners.com
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The merger also helps the company maintain a high standard of customer
service, which, Heupel says, is essential in the competitive aftermarket
business. "VIP has an outstanding reputation with automobile dealerships,
independent jobbers, and repair shops in Iowa, Illinois, and Wisconsin."
Continuity of relationships is essential to customer satisfaction,
Heupel says, and VIP has been fortunate to retain all key personnel,
including branch managers. "Our merged staff recognize the opportunity we all
have and are very motivated to continue our record of growth." Universal
reported record sales for fiscal year 2000 of $21,631,919 -- an 11 percent
increase over fiscal year 1999.
After the merger, VIP and Universal will have a combined total of 10
sales outlets in nine cities, 171 staff, and combined fiscal year 2000 annual
sales of $29,000,000. "One of the benefits of consolidation to our customers
is strategically located sales outlets throughout their markets," says Heupel.
Universal Manufacturing Co. was founded in 1947 as a remanufacturer of
engines, transmissions, and light powertrain parts for Ford dealers
nationwide. Due to substantial growth in its distribution operations, the
company formed Universal Distribution LLC in 1999. The company has
headquarters in Algona, Iowa.
FORWARD-LOOKING STATEMENTS: This press release contains statements that are
not historical facts, including without limitation, including statements
about Universal's expectations of the success of Rainbo Company L.L.C. or
market demand or acceptance of Universal or VIP products, Universal's
confidence, strategies, expectations and beliefs, technologies,
opportunities, industry and market segment growth, demand and acceptance of
new and existing products, and return on investment in products are
forward-looking statements that involve risks and uncertainties, including
without limitation, the effect of general economic and market conditions,
customer requirements for our products, the continuing strength of the
automotive industry, competitive pricing, maintenance of our current
momentum, weather conditions, and other factors.
