Shiloh Industries Completes Sale of Valley City Steel Subsidiary

    CLEVELAND, Aug. 2 Shiloh Industries, Inc. ,
a leading manufacturer of engineered and welded blanks, stamped components and
modular systems for the automotive and heavy truck industries, completed on
July 31 the previously announced sale of its steel-processing subsidiary
Valley City Steel Company to Viking Industries, a privately held Minority
Business Enterprise headquartered in Cleveland, Ohio.
    Shiloh and Viking formed a joint venture, Valley City Steel, LLC, in which
Shiloh owns a 49% minority interest and Viking owns a 51% majority interest.
Shiloh sold certain assets of Valley City Steel Company to Viking for $12.4
million in cash.  Shiloh has used the proceeds to reduce debt.  Viking
contributed the purchased assets to the joint venture.  Shiloh also
contributed certain assets and liabilities of Valley City Steel Company to the
joint venture.  Shiloh will retain ownership of the land and building where
the operations of the joint venture will take place, and lease these
facilities to the joint venture.  The purchase price is subject to certain
working capital adjustments.
    Valley City Steel is a full service steel processor that had been owned by
Shiloh Industries since 1977.  It is located in Valley City, Ohio and employs
approximately 115 people.  Shiloh anticipates that the joint venture will
continue operations at this facility without significant personnel or
operational changes.  The new entity will continue to provide steel processing
services to Shiloh Industries, Inc.
    Headquartered in Cleveland, Shiloh Industries, Inc. is a leading
manufacturer of engineered and welded blanks, stamped components and modular
systems for the automotive and heavy truck industries.  The Company currently
operates 12 subsidiaries, comprised of 15 facilities in Ohio, Georgia,
Michigan, Tennessee and Mexico and employs more than 3,000 people.
    The forward-looking statements in this press release involve a number of
risks and uncertainties.  Among the factors that could cause actual results to
differ materially are the following: a downturn in the automotive industry and
the general economy; competitive factors such as increases in the price of, or
limitations on the availability of steel; the ability of the Company to
continue to successfully integrate the operations of recent acquisitions; the
ability of the Company to consummate and implement its strategic initiatives
with respect to Canton Tool & Die; the ability to commence operations and
minimize start-up costs at new facilities, including the new Mexico facility
-- Saltillo Welded Blank; potential disruptions in operations due to, or
during facility expansions; delays in, or cancellations of, customer programs;
the risks and uncertainties related to commencing foreign operations; a labor
dispute involving Shiloh, its customers or suppliers; changes in estimated
sale prices of assets held for sale; and other risks and uncertainties that
may be identified from time to time in the Company's reports to the Securities
and Exchange Commission.

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