Aftermarket Technology Corp. to Consolidate Facilities

WESTMONT, Ill., June 23 -- Aftermarket Technology Corp. , today announced that it is consolidating its Mahwah, New Jersey facility into a Company-owned facility in Oklahoma City, Oklahoma. The Mahwah facility remanufactures transmissions for various import customers.

In commenting on the consolidation, Mike DuBose, Chairman, President and CEO said, "As part of our operational improvement initiative, we continually evaluate opportunities for cost savings. Mahwah is our oldest, most dated and highest labor cost facility. Additionally, the lease on the building is due to expire at the end of this year. In evaluating all of these factors, we concluded that the greatest cost savings can be achieved by discontinuing operations in Mahwah and moving this part of our business to Oklahoma City, which will provide a more competitive cost structure overall.

"We have formally notified our affected employees of the decision to close the Mahwah facility. We expect to begin the transfer of operations at the end of June with completion targeted early in the fourth quarter.

"From an earnings perspective, we expect this closure and subsequent transfer to be neutral to earnings before charges for the full year. We expect to take a charge of slightly more than $3 million associated with this event, spread over the three quarters remaining in 2003. At full implementation, we expect to realize an annual savings of approximately $2 million beginning in 2004.

"As we promised during our last conference call, before mid-July we plan to provide the market with an overall business update related to our drivetrain and logistics businesses," DuBose concluded.

For further information, please see the Company's most recent Form 10-Q filed with the Securities and Exchange Commission.

ATC is headquartered in Westmont, Illinois. The Company's operations include drivetrain remanufacturing, third party logistics, electronics remanufacturing and reverse logistics services.

The preceding paragraphs contain statements that are not related to historical results and are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those that are predictive or express expectations, that depend upon or refer to future events or conditions, or that concern future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, or possible future Company actions. Forward-looking statements involve risks and uncertainties because such statements are based on current expectations, projections and assumptions regarding future events that may not prove to be accurate. Actual results may differ materially from those projected or implied in the forward-looking statements. The factors that could cause actual results to differ are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2002 and other filings made by the Company with the Securities and Exchange Commission.