Sunbase Asia Inc. Announces Intention to Refocus Its Operations

Business Wire, Jan 7, 1999

LOS ANGELES--(BUSINESS WIRE)--Jan. 7, 1999--Sunbase Asia Inc. (Nasdaq NM:SNBS) Thursday announced its intention to divest its bearing manufacturing assets in the United States and to refine its business strategy, which may involve the finding of a new strategic alliance, reorganization and/or divestiture of its bearing manufacturing assets in China.

The company plans to divest its U.S. bearing manufacturing assets, Southwest Products Co., in such a way as to minimize the impact on the operations on Southwest Products and maximize the sale price. The company has appointed a trustee to oversee the operations of the subsidiary, to insure the subsidiary's compliance with all U.S. laws and regulations and to work with the company's board to actively pursue a suitable buyer.

In light of the company's decision to appoint a trustee pending the sale of Southwest Products, the Committee on Foreign Investment in the United States (CFIUS) approved the company's withdrawal of its voluntary notice to CFIUS regarding its acquisition of Southwest Products. As a result, the CFIUS investigation reported in the company's Nov. 19, 1998 Form 10-Q, has been terminated.

Safe Harbor Statement under the Private Securities Reform Act of 1995: The statements contained in this release that are not historical facts are forward-looking statements. There can be no assurance as to the price or terms that the company may realize for the sale of its U.S.-bearing manufacturing assets. As a result, no forward-looking statement should be regarded as a representation by Sunbase Asia, Southwest Products or any other person as to the outcome of any such sale.