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Letter to the Editor

Keystone Automotive Named in GM Lawsuit

General Motors alleges that Keystone is distributing, replacement grilles for General Motors' vehicles with a placeholder matched exactly to the "Chevrolet Bow Tie" design emblem and the "GMC" mark emblem, which infringes on General Motors' federal, state and common law trademarks. The suit claims this violates the Lanham Act and constitutes unfair competition under Michigan law. General Motors is seeking damages in an unspecified amount as well as certain equitable relief, including an injunction.

Keystone has only recently been served with the complaint and has not yet been able to thoroughly evaluate the case and obtain advice of counsel.

Based on a preliminary evaluation, Keystone believes that it has meritorious defenses and intends to defend its business practices. The company estimates the products in question will constitute an immaterial percentage of total sales once it formally ascertains which products are the subject of the complaint. Consequently, Keystone believes that whatever the outcome of the case, it will not have a material adverse impact on the company's operations or financial condition.

Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 114 distribution facilities, of which 21 serve as regional hubs, located in 37 states, Vancouver, Canada and Tijuana, Mexico.

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