Tower Automotive Announces Completion of $40 Million Private Placement

    GRAND RAPIDS, Mich.--Sept. 6, 2001--Tower Automotive, Inc. today announced the completion of a $40 million private placement of common stock. The financing was completed on August 31, 2001 with a select group of institutional investors.
    Under the terms of the financing, Tower sold approximately 3,636,400 shares of common stock at $11.00 per share. Tower has agreed to file a registration statement with the Securities and Exchange Commission covering the offer and sale of the shares by the investors. The number of shares issued in the sale was slightly less than the number of shares repurchased by Tower in the open market last year at an average price of $9.77 per share.
    Tower intends to use the net proceeds of the sale to repay borrowings under its existing senior credit facility. Robert W. Baird & Co. acted as exclusive placement agent for this transaction.
    "The proceeds from this private placement will enable Tower to pay down debt, continuing the aggressive debt reduction efforts that we started in the first quarter" said Dugald Campbell, president and CEO of Tower. "This successful transaction gives us flexibility in which to operate under our debt covenants and demonstrates our resolve to remain in compliance with our obligations."
    The shares have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
    This press release contains forward-looking statements regarding a private placement by Tower Automotive. You can identify forward-looking statements by use of forward-looking terminology such as "believes," "anticipates," "expects," "plans," "may," "will," "intends" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Such forward-looking statements have known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Tower Automotive to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements.

    About Tower Automotive

    Tower Automotive, Inc., produces a broad range of assemblies and modules for vehicle structures and suspension systems for the automotive manufacturers, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan, Auto Alliance, Fiat, Kia, Hyundai, BMW and Volkswagen. Products include body structural assemblies such as pillars and package trays, control arms, suspension links, engine cradles and full frame assemblies. The company is based in Grand Rapids, Mich., and has its corporate office in Minneapolis, Minn.