Standard Motor Products, Inc. Announces the Integration Plans for Dana's Engine Management Division

    NEW YORK--July 8, 2003--Standard Motor Products, Inc. , an automotive replacement parts manufacturer and distributor, announced its detailed plans to integrate the operations of the Dana Engine Management (DEM) business, acquired on June 30, 2003, with its existing SMP operations. Operations of all closed DEM facilities will be absorbed into existing Standard locations. The integration process will take place over the next 12-18 months.
    DEM presently has nine locations comprised of manufacturing, distribution and administration functions. The integration program will eliminate seven DEM locations that are redundant with SMP's existing capabilities. Two facilities that provide SMP with new manufacturing capabilities will be retained.
    The following locations will be closed: Branford, CT; Guilford, CT; Northvale, NJ; Argos, IN; Franklin Park, IL; Nashville, TN; and Independence, KS (21st Street). The facilities that will be retained are Mishawaka, IN and Independence, KS (Oak Street).
    Mr. Lawrence Sills, Standard Motor Products, Chairman and Chief Executive Officer, said, "As we previously announced, we have planned an aggressive integration program to achieve cost savings and provide improved customer service. We have now announced these plans to all employees and will implement the program as quickly as possible. Product lines will begin to be moved within the next 90 days, and we believe that all will be completed before the end of 2004. Total integration costs over this period are expected to be in the range of $30-35 million. Total annual cost savings are estimated at $55 million."
    Mr. Sills added, "We realize that many loyal DEM employees will be impacted by these changes. Every effort will be made to ease the burden by offering employment opportunities at other SMP locations."
    The press release does not constitute an offer of securities for sale.
    Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release, and detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.