August 6, 2001

Cleveland, Ohio – Hilite Industries, Inc. today said it has completed the acquisition of 100{fed1cb9cadadc7ad93f4a1e5499ba3581105cf44f475991d37411cbe777fdebd} of the shares of EBEA S.A. through its newly formed affiliate Hilite Inteational, Inc. Terms of the agreement were not disclosed.

With sales of approximately $50 million, the Maaz, France-based EBEA specializes in close tolerance machining and assembly of highly engineered automotive and electrical components. EBEA's products are sold to major European and US automotive OEMs and Tier I parts producers for use in motor vehicle engines and transmissions. The company's products are also utilized by major electrical components providers.

Hilite designs, manufactures, assembles, tests and sells a diversified line of highly-engineered components and assemblies for the automotive industry including solenoid valves, electromagnetic clutches, brake proportioning valves and complex stampings. With the acquisition of EBEA, Hilite has grown from 3 locations with $90 million in revenues in 1999 to 8 locations with revenues of over $225 million today through inteal growth and its acquisition strategy.

“This acquisition is a first step in Hilite's strategy of providing customers with a global source for transmission, engine and transfer case component solutions,” said Joseph W. Carreras, Chief Executive Officer of Hilite Industries, Inc. and Hilite Inteational. “The acquisition of EBEA builds on our strong track record of acquiring excellent companies, integrating them into the Hilite family, and expanding the individual company's customer and product opportunities,” Carreras added.

EBEA's Mr. Jean-Marc Bouverat noted “EBEA's thirty years of history has been characterized by strong customer relationships. The partnership with Hilite will take our operations and customer services to a still higher level.”

Hilite's customers include major US and European automotive companies, such as: Daimler Chrysler, Ford, General Motors, Peugeot and Renault. The Company also sells products to Tier 1 suppliers of the automotive industry including BorgWaer, Bosch, Delphi, Denso, Eaton, Getrag Ford, TRW and Visteon.

CANEC Inteational Ltd. originated and facilitated this transaction, acting as advisors to Hilite.