Drew Industries Acquires Two Manufacturers of RV Suspension Systems

Drew's Lippert Components Subsidiary Acquires Trailair and Equa-Flex

WHITE PLAINS, N.Y., Jan. 8 -- Drew Industries Incorporated today announced its wholly-owned subsidiary Lippert Components, Inc. acquired two affiliated companies, Trailair, Inc. and Equa- Flex, Inc., which manufacture several patented products, including innovative suspension systems used primarily for towable recreational vehicles. The two acquired companies reported combined sales in excess of $3.0 million.

The minimum aggregate purchase price was $5.5 million, of which $3.3 million was paid at closing and the balance will be paid over the next five years. The aggregate purchase price, including non-compete agreements, could increase to a maximum of $8.1 million if certain sales targets for these products are achieved by Lippert Components over the next five years. The acquisition was financed with borrowings under Drew's existing line of credit.

"As with all of our acquisitions, we expect this to be immediately accretive to Drew's earnings," said Leigh Abrams, Drew's President and CEO.

"Trailair and Equa-Flex recently introduced several new products, and Lippert Components is already reporting a substantial number of orders for these new products," said Jason Lippert, President and CEO of Lippert Components. "These products were very favorably accepted by RV manufacturers when we displayed the products at the Louisville RV industry trade show in late November 2006."

Drew reported that certain of Trailair's and Equa-Flex's management personnel will be employed by Lippert, and all manufacturing operations for the acquired products will be integrated into Lippert's existing factories. Lippert will not lease or acquire any facilities in connection with these acquisitions.

About Drew:

Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes. Drew's products include vinyl and aluminum windows and screens, doors, chassis, chassis parts, RV slide-out mechanisms and power units, leveling devices, bath and shower units, axles, bed lifts, steps, electric stabilizer jacks, as well as trailers for hauling equipment, boats, personal watercrafts and snowmobiles, and chassis and windows for modular homes and offices. From 46 factories located throughout the United States and one factory in Canada, Drew serves most major national manufacturers of RVs and manufactured homes in an efficient and cost-effective manner. Additional information about Drew and its products can be found at www.drewindustries.com.