FOR IMMEDIATE RELEASE
Qvale Contact:
Jeff Perlman: (818) 992-4353
Jperlman@jmprpublicrelations.com

QVALE AUTOMOTIVE GROUP AGREES
TO SELL ASSETS TO MG ROVER

SAN FRANCISCO (June 19, 2001) - The Italian subsidiary of San Francisco-based Qvale Automotive Group today announced that it has entered into an agreement to sell its assets to fabled British luxury and sports car manufacturer MG Rover. Qvale employs 70 people, and manufactures the Mangusta sports car at its factory in Modena, Northern Italy.

The agreement reunites the Qvale name with MG, a pairing which began in 1947. At that time, legendary importer Kjell Qvale, father of Qvale Automotive President Bruce Qvale, introduced the MG to the Western United States, helping to establish America's love-affair with sports cars.

"This transaction benefits both companies, because it combines the design and engineering strengths of the Qvale Mangusta project with the financial resources, brand recognition and production expertise of the MG Rover Group," according to Qvale Automotive President Bruce Qvale.

Qvale Automotive Group, through its 13 franchise dealers, will continue to market and sell the Mangusta in the United States. In addition, service, parts and warranties will be provided by the dealers with the support of Qvale Automotive Group's San Francisco headquarters.

Qvale Automotive Group is currently negotiating with MG Rover on a distribution agreement for MG Rover's newly announced X80 sports car, tentatively scheduled to debut in 2002.

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