chuckm -
At first I thought you mean wrapping the whole exhaust pipe. I have read that you risk melting your catalytic converter when you do that.
But, I have seen wrapping of the exhaust manifold for HP-only reasons. Hrmmmm, where did I see this recently ... Here it is :
Pegasus -Header Wrap, 2" wide x 1/16" thick - 50 foot Roll
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Header wrap will result in a cooler engine compartment. Not only will this help to prevent burns but it can also result in power gain by lowering intake air temperature. It can also help lower oil and water temperatures. Our 1/16 inch thick material will not degrade the header pipes nearly as fast as 1/8 inch thick material. (All header wraps contribute to shorter header life due to the intense heat within the wrap.) A 50 foot roll of header wrap is enough to cover most 4 cylinder headers. Does not contain asbestos.
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Pegasus - High Velocity Thermal Exhaust Jackets
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The quick-wrap High Velocity Exhaust Jacket kit from Thermo Tec is an innovative way to insulate and block radiant heat. The jackets cover the header tubes vertically instead of wrapping around the tubes like header wrap. High Velocity Exhaust Jackets can be applied with the headers already on the vehicle, saving time and hassle. The "relaxed" fit allows room for the header to expand without restriction, extending header life, and the air space between the header and the jacket provides added insulation. Fits all headers with 2 inch diameter or smaller primary tubes. Kits are sized to cover approximately 22 inches of each primary tube.
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Assuming it works, it sounds like you have to be careful with the application.
CarloSW2