DURA Automotive Reports Third Quarter 2005 Results

ROCHESTER HILLS, Mich.--Oct. 2, 20057, 2005--DURA Automotive Systems, Inc. , today reported revenues of $535.9 million for the third quarter ended October 2, 2005, compared to $616.4 million in the prior-year quarter. Net loss for the quarter was $6.6 million, or $0.35 per diluted share, compared to net loss of $2.7 million, or $0.15 per diluted share, in the prior-year quarter. DURA's adjusted loss from continuing operations for the quarter, which excludes facility consolidation charges and minority interest totaled $5.2 million, or $0.28 per diluted share, compared to income of $0.9 million, or $0.05 per diluted share, in the prior-year quarter.

"As industry conditions continue to soften, we have taken significant actions to improve our liquidity and further accelerate cost reductions. However, we are not satisfied with our results," said Larry Denton, president and chief executive officer of DURA Automotive. "During these difficult times, we have not sacrificed our commitments to our customers and growing our business organically. The company's management team remains dedicated to returning DURA to profitability."

The decrease in third-quarter revenue from the prior year was driven primarily by lower North American automotive production by the domestic OEMs, lower European automotive volumes, lower RV production and five fewer business days. Partially offsetting these decreases was the benefit received from foreign currency exchange. The decrease in third-quarter income from continuing operations from the prior year reflects the impact of lower overall production levels and five fewer business days.

The facility consolidation charge for the quarter relates to the previously announced headcount reductions associated with DURA's plan to migrate to one enterprise resource planning system and the continuation of the previously announced actions in the U.S. and Germany. The third quarter's facility consolidation charge before taxes of $1.9 million primarily represents employee severance costs.

Nine-Month Results

For the nine-month period ended October 2, 2005, revenue totaled $1.8 billion compared to $1.9 billion for the same period in 2004. Net loss for the nine-month period was $8.5 million, or $0.45 per diluted share, compared to net income of $9.8 million, or $0.52 per diluted share, in the prior year. DURA's adjusted loss from continuing operations for the nine months ended October 2, 2005, which excludes facility consolidation and other charges, a loss on the early extinguishment of debt, the favorable resolution of an environmental matter and minority interest, totaled $7.3 million, or $0.39 per diluted share, as compared to adjusted income from continuing operations of $23.4 million, or $1.24 per diluted share, in the same period last year.

2005 Full-Year Outlook

For the full-year, our automotive industry production planning assumptions are 15.6 million units for North America and 20.0 million units for Europe. For the full year, revenue is expected to be $2.3 to $2.4 billion, versus $2.5 billion last year. Adjusted EBITDA is expected to be between $170 and $180 million. Full-year capital spending is expected to be approximately $70 million, interest expense $100 million and depreciation $82 million. We expect net debt to increase by $20 to $40 million for the year. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measures is set forth below.

Conference Call

A conference call to review the second-quarter results is scheduled for October 27, 2005, at 11 a.m. EDT. Interested participants may listen to the live conference call or replay over the Internet by logging onto the investor relations section of the company's Web site, www.duraauto.com. A recording of this call also will be available until 6 p.m. ET on Thursday, November 3, 2005, by dialing (303) 590-3000, passcode 11040683.

About DURA Automotive Systems, Inc.

DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty vehicle industries. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products is available on the Internet at www.duraauto.com.

Use of Non-GAAP Financial Information

In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP") included throughout this news release, the Company has provided information regarding "adjusted income from continuing operations" and "adjusted EBITDA" (non-GAAP financial measures). Adjusted income from continuing operations represents income from continuing operations adjusted for facility consolidation and other charges, net, the favorable resolution of an environmental matter and a loss on early extinguishment of debt, net. Adjusted EBITDA represents income from continuing operations adjusted for facility consolidation and other charges, a loss on early extinguishment of debt, the favorable resolution of an environmental matter, interest, amortization, depreciation and taxes. Management believes that adjusted income from continuing operations and adjusted EBITDA are useful to both management and investors in their analysis of the Company's ability to analyze operational performance. Adjusted income from continuing operations and adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity. Also, adjusted income from continuing operations and adjusted EBITDA, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies.

Forward-Looking Statements

            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Amounts in thousands, except per share amounts - unaudited)


                           Three Months Ended     Nine Months Ended
                         October 2, October 3, October 2,  October 3,
                            2005       2004       2005        2004
                         ---------- ---------- ----------- -----------
Revenues                  $535,922   $616,363  $1,779,735  $1,909,742
Cost of sales              484,717    552,459   1,589,594   1,692,490
                         ---------- ---------- ----------- -----------
  Gross profit              51,205     63,904     190,141     217,252

Selling, general and
 administrative expenses    35,843     38,606     119,041     117,333
Facility consolidation,
 asset impairments and
 other charges               1,860      5,061       6,150      18,087
Amortization expense           101        103         317         334
                         ---------- ---------- ----------- -----------
  Operating income          13,401     20,134      64,633      81,498

Interest expense, net       24,513     23,907      74,390      66,695
Loss on early
 extinguishment of debt          -          -       3,349           -
                         ---------- ---------- ----------- -----------

  Income (loss) from
   continuing operations
   before provision for 
   income taxes and 
   minority interest       (11,112)    (3,773)    (13,106)     14,803

Provision (benefit) for
 income taxes               (4,638)    (1,094)     (4,864)      4,293
                         ---------- ---------- ----------- -----------

  Income (loss) from
   continuing operations    (6,474)    (2,679)     (8,242)     10,510

  Minority interests in
   income                     (110)         -        (110)

Loss from discontinued
 operations, net                 -        (18)       (106)       (699)
                         ---------- ---------- ----------- -----------

  Net income (loss)        $(6,584)   $(2,697)    $(8,458)     $9,811
                         ========== ========== =========== ===========

Basic earnings (loss)
 per share:
  Income (loss) from
   continuing operations    $(0.35)    $(0.15)     $(0.45)      $0.57
  Discontinued 
   operations                    -          -           -       (0.04)
                         ---------- ---------- ----------- -----------
   Net income (loss)        $(0.35)    $(0.15)     $(0.45)      $0.53
                         ========== ========== =========== ===========
Basic shares outstanding    18,711     18,578      18,689      18,468
                         ========== ========== =========== ===========

Diluted earnings (loss)
 per share:
  Income (loss) from
   continuing operations    $(0.35)    $(0.15)     $(0.45)      $0.56
  Discontinued 
   operations                    -          -           -       (0.04)
                         ---------- ---------- ----------- -----------
   Net income (loss)        $(0.35)    $(0.15)     $(0.45)      $0.52
                         ========== ========== =========== ===========
Diluted shares
 outstanding                18,711     18,578      18,689      18,881
                         ========== ========== =========== ===========

Capital expenditures       $17,086    $14,660     $44,690     $43,963
Depreciation               $19,971    $21,216     $61,463     $64,758




            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
              ADJUSTED INCOME FROM CONTINUING OPERATIONS
     (Amounts in thousands, except per share amounts - unaudited)


                           Three Months Ended     Nine Months Ended
                         October 2, October 3,  October 2, October 3,
                            2005       2004       2005        2004
                         ---------- ---------- ----------- -----------
Net income (loss)          $(6,584)   $(2,679)    $(8,458)     $9,811
Facility consolidation
 and other charges, net      1,228      3,590       4,007      12,918
Loss on early
 extinguishment of debt,
 net                             -          -       2,143           -
Favorable settlement of
 environmental matter,
 net                             -          -      (5,243)          -
Discontinued operations          -          -         106         699
Minority interest              110          -         110           -
                         ---------- ---------- ----------- -----------
  Adjusted income (loss)
   from continuing
   operations              $(5,246)      $911     $(7,335)    $23,428
                         ========== ========== =========== ===========


Basic earnings (loss)
 per share:
  Adjusted income (loss) 
   from continuing
   operations               $(0.28)     $0.05      $(0.39)      $1.27
                         ========== ========== =========== ===========
Basic shares outstanding    18,711     18,578      18,689      18,468
                         ========== ========== =========== ===========

Diluted earnings (loss)
 per share:
  Adjusted income (loss)
   from continuing
   operations               $(0.28)     $0.05      $(0.39)      $1.24
                         ========== ========== =========== ===========
Diluted shares 
 outstanding                18,711     18,717      18,689      18,881
                         ========== ========== =========== ===========



            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                       ADJUSTED EBITDA GUIDANCE
      (Amounts in millions, except per share amounts - unaudited)


                                                   Twelve Months Ended
                                                    December 31, 2005
                                                          Range
                                                  --------------------
                                                      Low       High
                                                  ---------- ---------
Operating Income                                        $87       $97
Depreciation expense                                     82        82
Facility consolidation and other charges                  9         9
Favorable settlement of environmental matter             (8)       (8)
                                                  ---------- ---------
    Adjusted EBITDA                                    $170      $180



            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        (Amounts in thousands)


                                              October 2,  December 31,
                   Assets                        2005         2004
--------------------------------------------- ----------- ------------

Current assets:
  Cash and cash equivalents                      $93,670     $191,568
  Accounts receivable, net                       356,809      273,956
  Inventories                                    136,836      149,834
  Current portion of derivative instruments            -        7,746
  Other current assets                           104,437       92,016
                                              ----------- ------------
   Total current assets                          691,752      715,120
                                              ----------- ------------

Property, plant and equipment, net               448,373      487,106
Goodwill, net                                    865,424      903,584
Noncurrent portion of derivative instruments           -       10,601
Deferred income taxes and other assets, net      100,148      107,510
                                              ----------- ------------
                                              $2,105,697   $2,223,921
                                              =========== ============
  Liabilities and Stockholders' Investment
---------------------------------------------

Current liabilities:
  Accounts payable                              $256,739     $270,341
  Accrued liabilities                            182,942      187,254
  Current maturities of long-term debt             1,294        2,968
                                              ----------- ------------
   Total current liabilities                     440,975      460,563
                                              ----------- ------------

Long-term debt, net of current maturities        154,482      150,898
Senior notes                                     400,000      400,000
Subordinated notes                               575,068      589,469
Mandatorily redeemable convertible trust
 preferred securities                             55,250       55,250
Senior notes - hedging mark-to-market value
 adjustment                                       (6,190)      18,347
Other noncurrent liabilities                     139,723      141,903

Stockholders' investment:
  Common stock - Class A                             187          186
  Additional paid-in capital                     352,148      351,571
  Treasury stock                                  (1,962)      (2,513)
  Retained deficit                              (101,800)     (93,342)
  Accumulated other comprehensive income          97,816      151,589
                                              ----------- ------------
   Total stockholders' investment                346,389      407,491
                                              ----------- ------------
                                              $2,105,697   $2,223,921
                                              =========== ============