Miller Industries, Inc. Announces Agreements In Principle for the Sale Of RoadOne Markets

CHATTANOOGA, Tenn., Oct. 10, 2002; Miller Industries, Inc. today announced that the Company currently has entered into non-binding agreements in principle for the sale of 27 of its 33 RoadOne® towing service markets, and is in discussions regarding the sale of the six remaining markets.

Based on these agreements and discussions, the Company expects net cash proceeds from these sales to exceed $20 million, sufficient to repay the senior bank debt associated with RoadOne operations, currently approximately $20 million, as well as additional associated liabilities. The Company intends to complete the sale of substantially all the remaining RoadOne operations by the end of the fourth quarter of 2002, although there can be no assurance that this timetable can be met due to the number of individual transactions involved.

These actions are in keeping with the Company's previously stated goal of pursuing all financial alternatives with respect to the overall RoadOne business to enhance shareholder value. The Company had previously focused on the disposition of under-performing operations within the RoadOne network or the sale of RoadOne as a whole. In light of current difficult operating conditions in the towing services market, the Company has made the determination to sell all its RoadOne terminals individually or as geographic markets. Taking this action will allow the Company to focus its resources on its core business as a manufacturer of a market-leading line of towing and recovery equipment and substantially enhance its profitability and financial position.

The proposed sales continue the progress made in the third quarter, during which the Company disposed of assets in six locations for proceeds of approximately $4.4 million.

For the year ended December 31, 2001, the RoadOne segment generated revenues of $156.5 million, and an operating loss of $(2.3) million, before special charges.

Jeffrey I. Badgley, President and CEO of Miller Industries, commented, "Strategically, we believe the sale of our RoadOne terminals individually or as geographic markets is the best decision for the Company and our shareholders. Financially, our position improves significantly, as the sales will allow us to reduce long-term debt by over $20 million. Operationally, these actions allow us to focus on our core business as a leading producer of towing and recovery equipment. We have worked hard to reduce the operating costs associated with our manufacturing operations and look forward to leveraging the opportunity present in this market when conditions improve."

Following generally accepted accounting principles, the Company's financial statements will report results from the entire towing services segment as Discontinued Operations starting in the fourth quarter of 2002. Any gain or loss on sales of operations, any subsequent write-downs and operational results associated with the towing services segment will be shown as net income gain/loss in Discontinued Operations, separate from Continuing Operations. Financial results from prior periods will be presented to conform to this accounting treatment.

Miller Industries is the world's leading integrated provider of vehicle towing and recovery equipment and services. The Company markets its towing services under the national brand name RoadOne® and its towing equipment under a number of well-recognized brands.