Stainless Steel Exhausts and More


BORLA PERFORMANCE INDUSTRIES has built a reputation as the leader in the design and
manufacture of automotive stainless steel performance exhaust. For nearly three decades, we have been
committed to providing world-class exhaust products that surpass the expectations of our customers in
providing the ultimate power, style, and endurance.

BORLA products are built to last a lifetime because our product lines are crafted from aircraft-quality
T-304 stainless steel, a metal tough enough to handle the heated gases, moisture and road hazards that
bombard an exhaust system every minute an engine is running. Cars are lasting longer and longer, so the
average car can require as many as 10 exhaust system replacements, depending on one’s geographic
location and usage. T-304 stainless steel has the highest chromium content, making it the most resistant to
corrosion. Also, this material allows us to design systems for maximum performance and sound quality.

BORLA has pioneered a variety of improvements in the design of performance exhaust. Alex Borla
currently holds five U.S. patents for innovative exhaust technology, and the company has won numerous
"Best New" product and engineering industry awards throughout the years. Our dedicated R&D facility
employs the latest technology and equipment, including a Quadrant Scientific FlowLab 1400CFM state-of the-art purpose built flowbench, DynoJet chassis dynamometer 20-1200 Horsepower/up to 200 MPH
(model# 248), DynoJet portable motorcycle dyno 0-500 Horsepower/up to 200 MPH. (model #200), a Faroarm coordinate measuring machine (model T10-02), and a Bruel & Kjaer sound meter –30 to +200db (model#2236). Furthermore, Alex Borla has designed many proprietary machines for our unique
manufacturing processes.

Our production facility is in the process of employing the Toyota Production System (TPS), the latest
manufacturing technique. This continuous flow production system allows for flexibility of smaller or
larger runs. We have QS-9000 certification and expect to be TS-16949 certified by the end of 2006.

Top engine builders and drivers look to BORLA to give them an edge on the racetrack: Kenny Bernstein,
Brandon Bernstein, Keith Dorton, Ken Duttweiler, Ryan Falconer, Arie Luyendyk, Jr., Pat Musi, to name a few. We have been involved with Team Lexus, Toyota racing programs as well as Team Viper’s GTS-R, Team Escort, and Team Focus programs from their inceptions. We “rule” the NHRA in exhaust; and
sponsor the Speedvision GT and touring class cars. GM Racing asked us to help them enhance the sound
quality of their Cadillac LMP for the 24-Hours of LeMans. We participate in the C5-R race program that
realized great success in the last 24-Hours of Daytona. From the strip to the rigors of off-road racing,
BORLA is the exhaust of choice with winning racers. Ordinary people, too, have rediscovered the excitement of owning and driving cars with a lot of get-up and-go. America’s love affair with the muscle car has endured through gas shortages, the 55 mph speed limit and shrinking parking spaces. Our products are distinguished and consumers recognize that BORLA is in a league of its own with regard to sound, look, performance and value.

BORLA has enjoyed nearly 2 decades of mutually beneficial relationships with the Original Equipment
Manufacturers (OEM). We participate in the design and build up of many concept vehicles for
DaimlerChrysler, General Motors and Ford as well as TRD, Mazda, and Lexus. We have initiated
successful promotional programs with Ford and Lincoln-Mercury, including a traffic building sweepstakes
in cooperation with Petersen Publishing, an ad campaign touting the BORLA-equipped limited edition
Cobra R, and a dealer option program for the new Cougar. Ford’s latest national dealer training videos
feature BORLA project vehicles. We developed a complete exhaust system, including headers, for the
Shelby Series I. We have been supplying exhaust for the Saleen Mustangs for years. We have also worked with Toyota and their Solara as well as Mazda and their Protégé on both aftermarket opportunities and limited production runs. Our new car dealership program, which such groups as Southeast Toyota, is extremely successful. Ford Racing relies on BORLA for their performance vehicles as well.

:: Product Summary ::

BORLA Exhaust products are crafted from aircraft-quality T-304 stainless steel with all-welded
construction and mandrel-bent tubing. Our products out flow all other exhausts on the market today and are backed by a million-mile warranty.

As local communities continue to encroach upon racetracks, we have recognized the need to quiet down
racecars without compromising power and have developed the XR-1® Raceline – stainless steel headers,
mufflers, and collector/mufflers – to lower db levels while maintaining maximum performance.

BORLA also offers a line of universal mufflers and tips, Borla ProXS, which is available only through professional installers nationwide.

Beside our regular product line, we also manufacture exhaust for private label, OEM, and fleet. Our
customers include DaimlerChrysler, General Motors, Ford Motor Company, Toyota, Saleen, Roush, and
UPS to name a few.

:: Sales & Distribution Strategy ::

BORLA distributes its products worldwide to every tier. Our integrated marketing programs have
tremendous consumer focus to build consumer awareness, create product demand, and pull product through the sales channels. We, therefore, aggressively keep our brand image strong and pull through sales to our wholesale network.

We partner with key distributors that target certain market segments.

  • Private Label such as Saleen; Steeda; TRD; Neuspeed; Shelby
  • Two-Step Distributors such as Keystone; Arrowspeed Warehouse; Motorstate Distributors
  • Mail Order Giants such as Summit Racing; Jegs Automotive; JC Whitney; Performance Products;
    Mid-America; Ecklers
  • National Speed Shop Networks
  • National Jobbers
  • National Franchisers including Four Wheel Parts Wholesale

BORLA is QS-9000 certified and supplies Mopar Performance, GM Performance Parts, Southeast Toyota and Ford Racing in the U.S. We have also successfully partnered with TRD and Lexus. BORLA will receive TS16949 certification by the end of 2006.

National new car dealers prefer BORLA Exhaust as a performance option.

UPS, with its national fleet of delivery trucks, has been running Borla’s since 1993.

:: Market Stats & Advertising Programs ::

BORLA is a market driven company. The core of our success probably lies in the fact that we recognize (and share) man’s enduring love affair with the automobile. We have grown with our customers by remaining sensitive to the changing needs of the driver. The non-age-specific consumer’s affinity to our
brand remains strong because our marketing stays in tune with the changing attitudes of the Baby Boomers
and GenXers alike. In the 70’s and early 80’s, the Japan backlash made car enthusiasts seek products of
quality. We recognized that and filled the need by supplying systems for Rolls-Royce, Jaguar, Mercedes –
then SUV’s, Hot Rods, and muscle cars. As the boomers got more ecologically minded, we developed race products for a quieter environment and increased fuel economy. Yet, BORLA is not “Your Father’s
Oldsmobile”. The younger generation covets the brand as well and lusts after it. The BORLA product line
is classic rather than trendy. We remain style conscious and understand we are as much in the fashion
business as performance; our image appeals to a wide audience, from drivers of BMWs and Ferraris to
Chevy Pick-Ups, to Honda Civics.

Our products are considered a performance upgrade rather than a replacement item, so we enjoy the largest sales from new vehicle owners; in fact, demand for a newly released system peaks at about 18 months, so we always have something new on the drawing boards.

BORLA’s integrated advertising and marketing programs build consumer awareness, create product demand and pull product through the sales channels. We sell to many tiers of distribution, from consumer direct to the individual jobber network as well as national warehouse distribution. We also have a new car dealership program where our products are offered as a performance upgrade option.

We encourage our warehouse distributors to participate in our cooperative advertising program.

Customer surveys help us identify the most effective ways to reach potential new customers and influence
their aftermarket product purchases. Sixty two percent of our customers identify magazine advertising and
editorial as the source of their first awareness. Based on this intelligence, our marketing includes:

  • Extensive advertising in over 60 high-profile automotive and race publications. Starch Readership Reports for AutoWeek magazine consistently rank Borla in the top 4 (and number 1 for the aftermarket) readership indexes, which measure the extent to which an ad is seen and read.
  • National and Regional Motorsports Programs. Borla sponsors top racers such as King of Speed Kenny Bernstein, Pat Musi, and Hurley Blakeney. Borla’s XR-1® race products are at the forefront of mufflered racing in such venues as NHRA, IHRA, NMCA, and NIRA, to name a few.
  • Public relations and publicity activities generate close to a million dollars in editorial coverage annually.
  • Development of product for high profile special edition OE vehicles.

BORLA’s rate of growth outpaces the industry average 4.5:1. According to the latest available industry data, the racing and performance segments of the specialty automotive equipment industry reached $21.89 billion in sales in 2005. The performance exhaust sub-segment, although not the largest, experienced 15% growth for the period 1994-7 and has grown steadily year after year. In fact, performance exhaust is among the top 3 aftermarket upgrades chosen first by consumers. (Source: 1998 & 2005 SEMA market studies)

In our 29-year history, we have experienced growth that is unprecedented in our industry. During the 1994-7 period, BORLA’s growth rate was 68%, or 4-1/2 times that of the performance exhaust segment as a whole. We captured almost one-quarter (23%) of the market growth during this 4-year period and continue to grow at significant rates. (Source: 1998 SEMA market study) We’ve never experienced a down year.

Performance exhaust sales are projected to increase at an annual rate of 12% over the next few years.
(Source: Frost and Sullivan, U.S. Exhaust System Parts Aftermarket)

Customer research shows, year after year, the major factors influencing purchase of our products are:

  • 57% BORLA reputation (BORLA brand)
  • 47% product quality and durability

Almost 50% of our customers say they only wanted BORLA products when shopping for performance
exhaust, and did not even consider competitive products. (Source: DCI Customer Surveys)

BORLA is proactive in cross marketing. Over the years, we have developed extensive relationships with
the media – print, TV, and the Internet. We have established “performance partners” in the automotive
aftermarket as well as the youth oriented car stereo and extreme sports industries. Our Ford Expedition
project vehicle won “Best Aftermarket Upgrade” at the 2000 Consumer Electronics Show. We were among the first to recognize and focus on the influence of women in the car selection and modification processes with our ’96 Ford Explorer “Beyond the Cup Holder” project. We are the most sought exhaust for project display vehicles at every SEMA show, with our Jeep Liberty being featured in the Jeep booth. Due to our aggressive approach, we are constantly being approached to partner with major manufacturers and magazine publishers.

BORLA was one of the first two companies to introduce a website at the 1994 SEMA show and one of the first in our industry to offer online shopping as well as online warranty registration. Our extensive print
advertising schedule drives consumers to our site. We have a complex back-end system for capturing
marketing data that we use to best plan marketing strategies as well as service the needs of our wholesale
and retail customers.

BORLA lead the industry with the introduction of our “Love Hurts!” Viral Video, which topped the cyber
charts for more than 2 months and is still a favorite. The video was even the subject of an LA Times article
on this innovation.

BORLA is involved in numerous consumer events throughout the year from coast to coast, allowing direct
exposure with automotive enthusiasts. These events – automotive as well as lifestyle related -- give people
the opportunity to experience our products as well as promotional vehicles “up close and personal”. Team
Ford and Import Racer! Magazine, for example, have displayed our project vehicles in their booths at the
Hot Import Nights and similar events. BORLA is the exhaust of choice for DUB, the urban lifestyle “hot

BORLA has licensing agreements with Microsoft, Rockstar Games, EA Games, Midway Home Entertainment, THQ, Activision, and Mattel for their hot electronic games. BORLA also licenses the brand to Jada Toys, Toy Zone, Action Racing Collectibles, Milestone Development Group and Mattel for their scale model collectibles.

BORLA is prominently featured in the HBO hit series, Lucky Louie as well as referred in the smash movie, The Fast and the Furious – Tokyo Drift dialogue as synonymous with unsurpassed power and performance.

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