FOR IMMEDIATE RELEASE Contact: Marie McDermott (956) 423-5440 Ext. 208 Cell: 956-893-2900 mmcdermott@harlingen.com Leading Global Supplier of Automotive Products Chooses Harlingen (September 29, 2006, Harlingen, Texas) Cardone Industries, a leading global supplier of automotive products, has purchased the former Fruit of the Loom building, the City of Harlingen, Harlingen Development Corporation, and the Harlingen Area Chamber of Commerce jointly announced today. The world's largest family-owned automotive remanufacturer, Cardone Industries is expected to start operations this year with 100 employees, following a retrofitting of the 680,000 sq. ft. building. The company projects a workforce of 500 within five years. The company sells remanufactured auto parts under the A1 Cardone brand focusing on six product lines: brakes, drive trains, electronics, motors (for windows and wipers), pumps, and steering. and sells all-new parts under the Cardone Select brand. It also makes “When people think about the automotive industry, they tend to focus on the big automakers and forget just how big the automotive aftermarket really is,” said Marie McDermott, President of the Harlingen Chamber of Commerce and one of the leaders of the negotiations strategy team. “Cardone is a major player in the multi-billion dollar aftermarket industry and has a reputation for quality, satisfied customers, and a dedicated workforce. Cardone's decision to open their second U.S. manufacturing and logistic operation in Harlingen sets a positive spotlight on our region.” Cardone's site selection team conducted intense negotiations with the Harlingen Development Corporation Board and City Commissioners, all of this facilitated by the Harlingen Area Chamber of Commerce Economic Development staff. Code-named Project Hall during negotiations, Cardone Industries currently operates a 4,500-employee plant in Pennsylvania and a manufacturing plant in Matamoros, as well as distribution centers in Chicago, Toronto, Los Angeles, and Belgium for its aftermarket automotive components. The Harlingen manufacturing and distribution facility's link to the Matamoros plant brings a true twin-plant operation to the community. “We usually think of aluminum and paper when recycling is mentioned, but about half of the durable parts on your vehicle can be recycled,” said Chamber Chairman Tip Johnston. “Old car parts get a new lease on life thanks to Cardone Industries. All the major automakers use Cardone.” Backed by the same quality systems used by original equipment manufacturers (OEM), re-manned parts have a positive impact on the environment and energy conservation. During remanufacturing, durable original components are recycled while worn parts are rebuilt or replaced. The “remanned” components meet original specifications, and in some cases, because of Cardone's reverse engineering, exceed the quality level of the originals. Mayor Rick Rodriguez applauded Cardone's decision and noted that it will have a great impact on Harlingen, since it is expected to bring over $7 million in annual payroll in the next five years. “Cardone Industries is making a major investment in our community and creating 500 well-paying jobs with full benefit packages. Additionally, we look forward to the opportunity of some Cardone suppliers opening facilities in Harlingen.” The American automotive aftermarket, a sector considered insulated from economic downturns, is growing exponentially. Cardone, now in its 36th year, was the first American remanufacturer to earn certification for the global automotive quality systems known as ISO/TS 16949. Acknowledged as an industry leader, Cardone is the three-time winner of the Automotive Service Industries Remanufacturer of the Year Award. Its founder, Michael Cardone Sr., was inducted into the Automotive Hall of Fame in 1994. “The Harlingen Development Corporation is pleased that Cardone Industries will be calling Harlingen home and benefiting our entire community,” said Development Corp. Chair Bill Card III. “This major automotive parts manufacturer is a critical part of our economic development plan to increase the number of jobs in our community and to provide the stimulus for added growth in the 509 corridor that connects Harlingen with Matamoros.” “Cardone fits in perfectly with Harlingen's long-term development plans since it is locating on the 509 corridor with fast access to the Free Trade International Bridge,” said Ana Borchardt, Economic Development Director at the Harlingen Chamber. Cardone is expected to pursue future market opportunities in Latin America, and the Harlingen location is considered a key to developing that sector. Harlingen Manufacturers Association president Norwood Fedie said Cardone's 500 jobs will account for 25 percent of manufacturing jobs in the city, and he looks forward to welcoming Cardone to the community. Harlingen is a regional leader and a superior place in which to live, work, visit and invest. We relentlessly promote our community with boldness, courage and a spirit of adventure. For more information please contact the Harlingen Area Chamber of Commerce Economic Development Department at 956-423-5440. 311 E. Tyler, Harlingen, Texas 78550 Tel. 956-423-5440 www.harlingen.com Fax 956-425-3870