Raytech Corporation Holds Annual Meeting

    SHELTON, Conn.--July 20, 2001--Raytech Corporation today held its 15th Annual Meeting. President and Chief Executive Officer Albert A. Canosa reviewed the Company's performance for the year ended December 31, 2000 and provided comments on the emergence from bankruptcy, which became effective April 18, 2001. Mr. Canosa reiterated comments contained in the May 14, 2001 press release related to the state of the automobile manufacturing industry and Raytech's ability to act quickly in reducing costs in the face of reduced demand.
    Mr. Canosa presented forecasted information for the first six months of 2001, which did not reflect the impact of certain reorganization or fresh start accounting adjustments, which will be recorded in the second quarter of 2001. The estimated sales for the six-month period of $106 million were less than the prior year amount of $129 million, a decline of 18%. The pretax income forecast of $5.4 million is $10.2 million less than the prior year amount of $15.6 million, a decline of 65%. The actual financial results, which will include the effect of the reorganization and fresh start adjustments, are anticipated to be available in mid-August 2001.
    Raytech Corporation is a recognized world leader in the production of wet and dry clutch, power transmission and brake systems as well as specialty engineered polymer matrix composite products and related services for vehicular applications, including automotive OEM, heavy duty on-and-off highway vehicles and aftermarket vehicular power transmission systems.
    Through three technology and research centers and six manufacturing operations worldwide, Raytech develops and delivers energy absorption, power transmission and custom-engineered components focusing on niche applications where its expertise and technological excellence provide a competitive edge.
    Raytech Corporation, headquartered in Shelton, Connecticut, operates manufacturing facilities in the U.S., Germany, England and China as well as technology and research centers in Michigan, Indiana and Germany. The Company's operations are strategically situated in close proximity to major customers and within easy reach of geographical areas with demonstrated growth potential.