Holley Performance Products Announces $7 Million+ Expansion

Company's Expansion Will Include Creation of Up to 136 New Jobs

Contact: Jessica M.L. Thompson, Marketing & Communications Director
270-781-3200; jessica@bgchamber.com

BOWLING GREEN, KY (February 3, 2012)--Holley Performance Products has announced an expansion at its Bowling Green facility. This project includes a capital investment of more than $7 million to build the new distribution center and, as a result of the expansion, will create up to 136 new jobs over the next several years to its already existing workforce of more than 250 employees in Bowling Green.

"We know Kentucky's auto industry is innovative and dynamic, and Holley Performance Products is a perfect example of the hard-working attitude that makes Kentucky competitive and prosperous in the industry," Gov. Beshear said. "I'm proud to have Holley Performance Products in the Commonwealth, and thrilled for their success moving forward."

Holley is a leading manufacturer of fuel systems among racers and high performance auto enthusiasts. The company, which was established in 1903, moved its carburetor manufacturing facility to Bowling Green in 1953 and relocated its corporate office to Bowling Green from Michigan in 1992. This announced expansion is a multi-faceted product encompassing the growth of the company's local distribution center and additional product manufacturing, and the launch of a new Demon Carburetion product line. Also, Holley will renovate its current Bowling Green facility.

"This announcement demonstrates the fact that Bowling Green is working hard to create an environment that is supportive of local businesses which will help create jobs right here in Bowling Green," said Tom Tomlinsons, Holley's President & CEO. "We are eager to begin expanding and upgrading our facilities here, and we are anticipating great excited that Demon brand carburetors will also now be manufactured right here in Bowling Green. We thank Governor Beshear and our local and state leaders for assisting with our expansion plans, and we look forward to increasing our business in South Central Kentucky."

As a recognized leader in the racing and performance segment of the automotive aftermarket industry, Holley designs, manufactures and markets a diverse line of high performance automotive intake products:

• Racing and high performance street carburetors
• Fuel injection systems and components
• Nitrous oxide injection systems
• Intake manifolds
• Superchargers
• Performance automotive plumbing products
• Exhaust products, including exhaust headers and complete exhaust systems

Holley markets its products under a number of highly regarded brand names: Holley, Hooker Headers, Nitrous Oxide Systems (or "NOS"), Earl's, Weiand, and the recently acquired Demon Carburetion and related brands. In addition to these premium brands, the Company manufactures and markets products under value-oriented brands including Flowtech and newly-formed Sniper Motorsports. The company also manufactures private-label products for a number of customers in the performance aftermarket.

"I am pleased to hear Holley Performance recognizes the solid work ethic and excellent quality of life in Bowling Green," said Sen. Mike Wilson, of Bowling Green. "These new jobs will provide a boost to our economy and offer new opportunities for our workforce."

"Bowling Green has long been known as a place for an outstanding workforce, and a place built for speed thanks to being the home of the Corvette," said Rep. Jim DeCesare, of Bowling Green. "Today's announcement is a further indication of the confidence Holley has in our community and our people, and is reflective of Kentucky's growing role in the automotive and automotive component manufacturing industry."

Having been a part of Bowling Green for nearly 60 years, Holley is an outstanding corporate citizen within South Central Kentucky," said Warren County Judge Executive Michael Buchanon. "We're proud to have this industry leader in our region, and we greatly appreciate their decision to expand the local facilities. With a capital investment and planned new jobs like those announced by Holley, the project will significantly contribute to our economy."

City of Bowling Green Mayor Bruce Wilkerson said, "This is an exciting announcement for Bowling Green, Warren County and South Central Kentucky. By making additions and renovations to the current facility and adding new jobs to its workforce, Holley Performance Products is making the statement that it is confident in our positive business climate. It's a joy to know that this long-standing company has chosen to invest further dollars into our region."

The City of Bowling Green, the County of Warren, local legislators and the Bowling Green Area Chamber of Commerce assisted Holley in the approval of its economic development project, demonstrating the entities' commitment to the company's growth. Chamber Board of Directors Chairman D. Gaines Penn said, "We're very appreciative of our local and state officials' full support of this project. Governor Beshear, our state legislators, the City and County, and the Kentucky Cabinet for Economic Development played integral roles in collaborating with Holley to ensure that this project will be a success and a benefit to the region."

Penn continued, "We thank Holley's leaders for continuing to invest in our community and region, and we extend well-deserved congratulations to the company on this expansion."

The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved Holley Performance Products for tax incentives up to $3 million through the Kentucky Business Investment (KBI) program. The performance-based incentive will allow Holley to keep a portion of its investment over a 10-year period through corporate income tax credits and wage assessments by meeting job and investment targets.

KEDFA also approved Holley for tax benefits up to $120,000 through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.

These incentive programs are a part of Incentives for New Kentucky (INK), which was enacted by Governor Beshear and the state legislature, including Representatives Johnny Bell, Jim DeCesare, Jody Richards and Wilson Stone of Warren County, in June 2009 to revise previous incentive programs and create new incentive opportunities for economic development. Support given by these local legislators, as well as Senator Mike Wilson, to INK has enhanced industry attraction, retention and expansion efforts throughout South Central Kentucky.

When hiring is complete, Holley's expansion will create more than 70 indirect jobs in the community. Indirect jobs are those created based on the demand of the expanded workforce and investment created by the company's direct expansion. By 2015, the expansion will have a total economic impact valued at more than $118 million. Locally, the project will have generated an additional $1.5 million in city, county, school districts and utility tax revenue.

Additionally, this expansion will contribute an additional household spending impact of more than $6.5 million annually once hiring is complete. This household spending will include

• $1.2 million in additional housing/shelter
• $948,000 in vehicle purchases, rentals, maintenance and insurance
• $918,000 in food at home and in restaurants
• $489,000 in utilities, fuels and public services
• $236,000 in household furnishings and major appliances

Those wishing to submit applications for employment at Holley Performance Products should do so by sending information to resumes@holley.com.

For more information on Holley Performance Products, visit www.holley.com.

About Holley Performance Products:

About the Kentucky Cabinet for Economic Development:

Information on Kentucky's economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky.

A detailed community profile for Bowling Green (Warren County) can be viewed at www.thinkkentucky.com/EDIS/cmnty/index.aspx?cw=067.

Follow Governor Beshear on Twitter @Govstevebeshear, read the Governor's personal notes on his blog at http://blog.governor.ky.gov/, and view his video commentaries at www.youtube.com/governorbeshear.

About the Bowling Green Area Chamber of Commerce:

Incorporated in 1935, the Bowling Green Area Chamber of Commerce is a 5-Star Accredited Chamber by the U.S. Chamber of Commerce and was named the 2009 Chamber of the Year by the American Chamber of Commerce Executives. As the fourth largest chamber in Kentucky, the Chamber serves as a premier business advocate for its more than 1,300 partners and is the driving force for economic development in South Central Kentucky. Its primary goals are to promote growth and success in the business community, reaching its small business partners and those in large industries alike. With leadership programs, governmental relations projects, educational initiatives and involvement opportunities, the Chamber aims to support the community and its neighbors in order to enhance the business climate and continue to grow the region.

To learn more about the Bowling Green Area Chamber of Commerce, visit www.bgchamber.com.