T.J.T., Inc. Plans Expansion Into Arizona

Business Wire, August 3, 1998

EMMETT, Idaho--(BUSINESS WIRE)--Aug. 3, 1998--T.J.T., Inc. (NASDAQ SmallCap:AXLE), a supplier of recycled axles and inspected tires to the manufactured housing industry, plans to expand its operations into Arizona with an agreement to purchase an existing firm located in Chandler, Arizona.

The firm, Ford's Tires and Axles, has annual revenues of approximately $2.5 million.

The agreement includes a management contract under which T.J.T. will manage the Arizona operation for up to six months prior to finalizing the purchase. In return, T.J.T. will receive a monthly fee and a percentage of pre-tax profits from the operation.

"We are very excited about this arrangement with Ford's Tires and Axles," said Terry Sheldon, president and chief executive officer of T.J.T. "It gives us expanded market reach and the opportunity to work closely with Ford's management before the acquisition is completed."

Sheldon said that entering the market in the southwestern United States, particularly Arizona, has been one of T.J.T.'s primary strategic objectives. The demand for manufactured homes is exceptionally strong in Arizona which positively affects T.J.T.'s supply of used axles and tires as well as sales of recycled units to manufacturing plants.

"The operation in Arizona fills in T.J.T.'s market penetration in the western United States, giving us the ability to serve 11 Western states," said Sheldon. The proposed acquisition adds Arizona and New Mexico to the company's existing market area which currently includes Idaho, Washington, Oregon, California, Colorado, Utah, Montana, Nevada and Wyoming. T.J.T. presently operates recycling facilities in five states -- Idaho, Washington, northern California, Oregon and Colorado.

"The concept of a management contract is also a significant plus," Sheldon noted. "We will be closely involved in Ford's operations on a day-to-day basis and, through the advance of operating capital and the loan of equipment, will have input into improving operating performance prior to acquisition."

Established in 1977, T.J.T. is a major provider of recycled axles and inspected tires to the manufactured housing industry. In addition ttured housing industry and vinyl siding to the ar ended September 30, 1997, the company had revenue of $25.4 million.

CONTACT: T.J.T., Inc.

Scott Beechie, 208/365-5321

or

in.ves'com

Dolores Chenoweth, 503/469-0338