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Blue Water Automotive Systems Acquires Injectronics' Automotive Business

NEW YORK, May 18, 2006 -- KPS Special Situations Funds ("KPS") announced today that its portfolio company, BWAS Holdings, Inc., the parent company of Blue Water Automotive Systems, Inc. ("Blue Water"), has acquired the automotive business of Injectronics, Inc. ("Injectronics"), which manufactures highly engineered injection molding products. Financial terms of the transaction were not disclosed.

Blue Water is a leader in the manufacture and design of highly engineered thermoplastic components and assemblies for the automotive industry. The addition of the Injectronics automotive business will broaden Blue Water's customer base, increase its critical mass, and further its transformation into an integrated, full-service design, engineering and manufacturing enterprise. Blue Water expects to benefit from an extended geographic reach, including critical markets such as the Southeastern United States, a sharpened focus on quality and service, and enhanced economies of scale. The Injectronics automotive business has more than 500 employees at manufacturing and research facilities in Michigan, Ohio and North Carolina.

David Shapiro, a managing principal of KPS, said, "The Injectronics automotive business is an ideal strategic fit with Blue Water. Its customer base and geographic reach are highly complementary, and it augments our product offerings and research and engineering capabilities. We are pleased that, as a result of the acquisition, we can now provide our customers with a full spectrum of highly engineered, value-added products and services."

Alan DeVore, who joined Blue Water in February as Chief Executive Officer, said, "I am delighted to be leading Blue Water during this exciting point in the Company's evolution. Blue Water today has efficient operations, a growing customer base, and a highly experienced management team. Today's transaction further enhances the Company's ability to deliver superior services and products to an expanded customer base. I look forward to working closely with KPS and the now expanded Blue Water management team to capitalize on the many opportunities ahead."

Financing for the transaction was provided by CIT.

Injectronics, Inc. will continue to support and grow its healthcare and consumer products business out of its Clinton and Westborough, Massachusetts facilities.

About Blue Water Automotive Systems

Blue Water (www.bwasi.com) is a leading manufacturer and designer of highly engineered molded thermoplastic components and assemblies for sale to automotive original equipment manufacturers and automotive suppliers. The Company's products include air flow ducts, air exhausters, fender liners, functional trim and interior trim. The Company's customers include General Motors, Daimler-Chrysler, Air International, Intier and Visteon. With approximately 1,300 employees, Blue Water, headquartered in Marysville, Michigan, operates six manufacturing facilities in Michigan and one manufacturing facility in Mexico.

About KPS Special Situations Funds

KPS Special Situations Funds are a family of private equity funds with over $600 million of committed capital focused on constructive investing in restructurings, turnarounds and other special situations. KPS has created new companies to purchase operating assets out of bankruptcy; established stand- alone entities to operate divested assets; and recapitalized highly-leveraged public and private companies. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. KPS invests its capital concurrently with a turnaround plan predicated on cost reduction, capital investment, and capital availability. Typically, the KPS turnaround plan is accompanied by a financial restructuring of the company's liabilities. The KPS investment strategy and portfolio companies are described in detail at the firm's website: www.kpsfund.com.