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                                                                Exhibit 99

     CRAGAR INDUSTRIES, INC. RAISES $2.0 MILLION IN PREFERRED STOCK OFFERING


Phoenix, AZ, January 21, 1998 - CRAGAR Industries, Inc. (NASDAQ: CRGR) today
reported that it had raised $2.0 million from a private placement of Series A
Convertible Preferred Stock, including the conversion of $900,000 of debt into
equity. The purpose of the private placement was to raise additional capital in
order to meet the minimum maintenance requirements for continued listing on
Nasdaq and the Boston Stock Exchange. The Company's capital and surplus and
shareholders' equity had fallen below the minimums required by Nasdaq and the
Boston Stock Exchange primarily as the result of the establishment of an
allowance for bad debt arising from the bankruptcy of the Company's primary
customer. With the proceeds from the offering, the Company's net tangible assets
exceed $2,000,000, the minimum requirement for Nasdaq listing to become
effective February 23, 1998, and the Company's shareholders' equity
substantially exceeds $500,000, the minimum requirement for continued listing on
the Boston Stock Exchange. There can be no assurance, however, that the Company
will continue to meet these minimum requirements for listing on Nasdaq and the
Boston Stock Exchange. If the Company fails to meet such requirements in the
future, the Company's securities could be likely delisted from Nasdaq and the
Boston Stock Exchange, which likely would have a material adverse effect on the
market value of the Company's securities.

         Cragar Industries, Inc. is an international designer, producer, and
seller of custom wheels and wheel accessories for cars, trucks, vans, sport
utility vehicles, racing vehicles, and motorcycles.

         For additional information, contact Michael L. Hartzmark, President and
CEO, 602-247-1300. Internet address: http:\\www.prnewswire.com/cnoc. To obtain
hard copies, call Fax-On-Demand at 800- 758-5804.

         This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the Series A
Convertible Preferred Stock in any state in which such offer, solicitation, or
sale would be unlawful under the securities laws of any such state.

         The Series A Convertible Preferred Stock to be sold in connection with
the private placement discussed herein has not been registered under the
Securities Act of 1933 and may not be offered or sold absent registration or an
applicable exemption from the registration requirements.

         This release includes statements which may constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are inherently subject
to risks and uncertainties, some of which cannot be predicted or quantified.
Future events and actual results could differ materially from those set forth
in, contemplated by, or underlying the forward-looking statements. Please refer
to the Risk Factors in the Company's filings with the Securities and Exchange
Commission which identify certain important factors that could cause the actual
results to differ materially from those contained in our forward-looking
statements. These factors include, but are not limited to, the bankruptcy of the
Company's primary customer, dependence on external financing, product
availability, market conditions, as well as general economic conditions.