ABC-NACO Adjusts Production To Offset Labor Dispute in Mexico

    LOMBARD, Ill.--June 14, 2001--ABC-NACO Inc. (ABCR) announced today that labor negotiations continue with the unionized employees at its Sahagun, Hidalgo, Mexico Facility. The labor contract expired May 30, 2001, and the employees have not worked since then.
    Vaughn W. Makary, President and CEO of ABC-NACO said, "Both sides in this labor dispute are working hard to resolve the outstanding issues. A settlement will need to reflect the economics of the currently depressed rail market situation. The severity of the current downturn in orders, particularly for new freight cars, has placed extreme cost pressure on all rail products suppliers."
    The company will begin increasing production at its other facilities in order to fill customer orders and to minimize the impact of the work stoppage. The effects of the work stoppage and the relocation of production to the other facilities will have a negative impact on the Company's operating results.

    ABC-NACO is one of the world's leading suppliers of technologically advanced products to the rail industry. With four technology centers around the world, ABC-NACO holds pre-eminent market positions in the design, engineering and manufacture of high-performance freight car, locomotive and passenger suspension and coupling systems, wheels and mounted wheel sets. The Company also supplies railroad and transit infrastructure products and services and technology-driven specialty track products. It has 23 offices and facilities in the United States, Canada, Mexico, Scotland, Portugal and China.

    Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts, may be deemed to be forward-looking statements that are subject to change based on various factors which may be beyond the control of ABC-NACO Inc. Accordingly, actual results could differ materially from those expressed or implied in any such forward-looking statement. Factors that could affect actual results are described more fully in the Company's Amended Annual Report on Form 10-K for the year ended December 31, 2000, under the captions "Recent Developments" and "Regarding Forward Looking Statements," and other risks described from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.