27th October 2006 - ABS Friction Announces Ownership Change

ABS Friction Corp. announces the successful acquisition of its parent company, ARI Holdings Canada Corp., from the Bankruptcy Trustee of American Remanufactures Inc. (ARI).

Rick Jamieson, president of ABS Friction Corp., announced today that a transaction to purchase ARI Holdings Canada Corp. from the ARI Bankruptcy Trustee has been completed.  Some of the original shareholders of ABS Friction Corp. have reacquired the company.

ARI Holdings Canada Corp. is the controlling shareholder of ABS Friction Corp. and ABS On Time Logistics Corp.

According to Mr. Jamieson, "The successful conclusion of the transaction is a direct result of the constant support of our customers, our suppliers and our employees over the last year.  It has been a tremendously challenging period for all parties involved to ensure the survival of ABS Friction Corp. through the uncertainty caused by the bankruptcy of ARI.  This acquisition could not have occurred at a more appropriate time than on the eve of the AAPEX Show in Las Vegas next week.  We are very excited that the show will provide us with an opportunity to tell our story of survival to the market."

About ABS Friction

ABS Friction Corp., Guelph, Ontario, Canada, is a major aftermarket supplier of replacement automotive friction products.  ABS Friction Corp. is ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 registered.  For more information on ABS visit www.absfriction.com.

ABS is also a member of the Friction Materials Standards Institute www.fmsi.org and the Brake Manufacturer's Council www.brakecouncil.org .  Rick Jamieson, FCA, is the current president of the Friction Materials Standards Institute.

ABS Friction employs approximately 115 people at its various locations.

For further information contact:  Rick Jamieson 1.519.220.9901

Source: ABS Friction Corp.  Press Release