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Tower Automotive Announces Operating Results

    GRAND RAPIDS, Mich.--July 22, 2003--Tower Automotive, Inc. , today announced second quarter revenues of $743 million, compared with $751 million in the second quarter of 2002. The company reported a net loss of $2 million, or $0.04 per diluted share, for the quarter versus net income for the second quarter of 2002 of $23 million, or $0.37 per diluted share. As summarized in the table below, several significant items occurred in the second quarters of 2003 and 2002 that reduced reported results by $0.29 and $0.03 per diluted share, respectively.
    For the six months ended June 30, 2003, revenues were $1.5 billion, compared with $1.4 billion in the 2002 period. Reported net income for the six months ended June 30, 2003 was $9 million, or $0.16 per diluted share. The company reported a net loss of $124 million for the six months ended June 30, 2002, or $2.35 per diluted share. As summarized in the table below, several significant items occurred in the six months ended June 30, 2003 and 2002 that reduced reported results by $0.30 and $3.01 per diluted share, respectively.
    "For the quarter, we converted well on higher than expected sales," stated Dug Campbell, president and chief executive officer of Tower Automotive. "We also generated $112 million of cash from operations, which exceeded our capital spending of $58 million for the quarter. Our recent debt restructuring has improved the financial flexibility of our enterprise and our launch activity is on track."
    During the second quarter of 2003, the company completed a $258 million senior note offering and also amended its senior credit facility, reducing the borrowing capacity but providing for less stringent financial covenants in order to enhance overall liquidity. The combination of the senior notes offering and amended senior credit facility will also provide flexibility for the company to redeem its $200 million convertible subordinated notes.
    The company previously announced that it is relocating the production of high-volume frame assemblies for the Ford Ranger currently performed at its Milwaukee facility to its Bellevue, Ohio, business unit. The relocation of the Ranger production line will be completed by June of 2004. Tower Automotive expects to realize annual cash savings, primarily from reduced labor costs, of approximately $10 million following full completion of the move. During the second quarter of 2003 the company recorded a $23.1 million pre-tax restructuring and asset impairment charge ($0.27 per share effect) comprised of cash charges of $2.8 million, pension and other post-retirement benefit plan curtailment costs of $7.7 million and non-cash asset impairment charges of $12.6 million related to restructuring activities.
    As indicated above, the periods presented include several significant items that reduced reported results. The following summarizes the impact of these items on diluted EPS:



                                        Three Months Ended
                                June 30, 2003        June 30, 2002
                                -------------        -------------
($ in thousands, except per
 share amounts)
                             Net of tax Per share Net of tax Per share
                             ---------- --------- ---------- ---------
Restructuring and asset
 impairment charges            $15,224     $0.27         --        --
Production interruption costs      769      0.01         --        --
Lawsuit settlement at equity
 joint venture                     660      0.01         --        --
Write-off of debt issuance
 costs                             292      0.01     $1,296     $0.02
Write-off of assets at equity
 joint venture                      --        --        443      0.01
Dilution effect                     --     (0.01)        --        --
                                        ---------            ---------
Total impact per diluted
 share                                     $0.29                $0.03
                                        =========            =========



                                         Six Months Ended
                                June 30, 2003        June 30, 2002
                                -------------        -------------
($ in thousands, except per
 share amounts)
                             Net of tax Per share Net of tax Per share
                             ---------- --------- ---------- ---------
Restructuring and asset
 impairment charges            $15,224     $0.27    $49,015     $0.92
Production interruption costs      769      0.01         --        --
Lawsuit settlement at equity
 joint venture                     660      0.01         --        --
Write-off of debt issuance
 costs                             292      0.01      1,296      0.02
Write-off of assets at equity
 joint venture                      --        --        443      0.01
Cumulative effect of SFAS 142
 adoption                           --        --    112,786      2.13
Gain on sale of plant               --        --     (2,495)    (0.05)
Dilution effect                     --        --         --     (0.02)
                                        ---------            ---------
Total impact per diluted
 share                                     $0.30                $3.01
                                        =========            =========


    Accessing the Conference Call Website and PowerPoint Presentation - A conference call of the second quarter and six month results is scheduled today at 11 a.m. ET. Investors may access the Webcast and online presentation by logging onto www.towerautomotive.com, selecting "Investors" and clicking on the Webcast icon.
    Tower Automotive, Inc., is a global designer and producer of vehicle structural components and assemblies used by every major automotive original manufacturer, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan, Fiat, Hyundai/Kia, BMW, and Volkswagen Group. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company is based in Grand Rapids, Mich. Additional company information is available at www.towerautomotive.com.





                TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Amounts in thousands, except per share amounts - unaudited)


                           Three Months Ended     Six Months Ended
                                 June 30,             June 30,
                           ------------------- -----------------------
                             2003      2002       2003        2002
                           --------- --------- ----------- -----------
Revenues                   $743,179  $750,872  $1,475,757  $1,418,979
Cost of sales               664,731   658,178   1,322,785   1,257,276
                           --------- --------- ----------- -----------

  Gross profit               78,448    92,694     152,972     161,703
Selling, general and
 administrative expenses     39,135    37,367      73,811      70,362
Restructuring and asset
 impairment charge           23,066        --      23,066      75,407
                           --------- --------- ----------- -----------

  Operating income           16,247    55,327      56,095      15,934

Interest expense, net        18,083    17,176      34,852      35,207
Other expense (income)           --     2,939          --        (900)
                           --------- --------- ----------- -----------
  Income (loss) before
   provision for income
   taxes                     (1,836)   35,212      21,243     (18,373)

Provision (benefit) for
 income taxes                  (625)   12,324       7,222      (6,432)
                           --------- --------- ----------- -----------
  Income (loss) before
   equity in earnings of
   joint ventures and
   minority interest         (1,211)   22,888      14,021     (11,941)

Equity in earnings of
 joint ventures, net          3,144     4,277       3,788       8,662
Minority interest, net       (4,356)   (4,274)     (8,660)     (8,347)
                           --------- --------- ----------- -----------
  Income (loss) before
   cumulative effect of
   change in accounting
   principle                 (2,423)   22,891       9,149     (11,626)
Cumulative effect of
 change in accounting
 principle                       --        --          --    (112,786)
                           --------- --------- ----------- -----------

Net income (loss)           $(2,423)  $22,891      $9,149   $(124,412)
                           ========= ========= =========== ===========

Basic earnings (loss) per
 common share:
  Income (loss) before
   cumulative effect of
   change in accounting
   principle                $ (0.04)   $ 0.40      $ 0.16     $ (0.22)
  Cumulative effect of
   change in accounting
   principle                     --        --          --       (2.13)
                           --------- --------- ----------- -----------
    Net income (loss)        $(0.04)    $0.40       $0.16      $(2.35)
                           ========= ========= =========== ===========

Weighted average basic
 shares outstanding          56,556    57,841      56,375      53,047
                           ========= ========= =========== ===========

Diluted earnings (loss)
 per common share:
  Income (loss) before
   cumulative effect of
   change in accounting
   principle                $ (0.04)   $ 0.37      $ 0.16     $ (0.22)
  Cumulative effect of
   change in accounting
   principle                     --        --          --       (2.13)
                           --------- --------- ----------- -----------
    Net income (loss)        $(0.04)    $0.37       $0.16      $(2.35)
                           ========= ========= =========== ===========

Weighted average diluted
 shares outstanding          56,556    74,130      56,632      53,047
                           ========= ========= =========== ===========


               TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                        (Amounts in thousands)

                                               June 30,   December 31,
                   Assets                        2003         2002
--------------------------------------------- ----------- ------------
                                              (unaudited)
Current assets:
  Cash and cash equivalents                     $205,283      $13,699
  Accounts receivable                            371,930      249,341
  Inventories                                    113,193      133,074
  Deferred income taxes, net                      16,163       20,634
  Prepaid tooling and other                      152,650      100,433
                                              ----------- ------------
    Total current assets                         859,219      517,181
                                              ----------- ------------

Property, plant and equipment, net             1,057,073    1,073,619
Investments in joint ventures                    260,840      260,898
Deferred income taxes                            117,477      105,699
Goodwill                                         486,611      472,967
Other assets, net                                159,805      127,521
                                              ----------- ------------
                                              $2,941,025   $2,557,885
                                              =========== ============

  Liabilities and Stockholders' Investment
---------------------------------------------
Current liabilities:
  Current maturities of long-term debt and
   capital lease Obligations                     $95,420    $ 120,470
  Accounts payable                               572,041      417,727
  Accrued liabilities                            273,543      284,450
                                              ----------- ------------
    Total current liabilities                    941,004      822,647
                                              ----------- ------------

Long-term debt, net of current maturities        757,883      535,220
Obligations under capital leases, net of
 current maturities                               32,747       29,731
Convertible subordinated notes                   199,984      199,984
Other noncurrent liabilities                     226,984      199,477
                                              ----------- ------------
    Total noncurrent liabilities               1,217,598      964,412
                                              ----------- ------------

Mandatorily redeemable trust convertible
 preferred securities                            258,750      258,750

Stockholders' investment:
  Preferred stock                                     --           --
  Common stock                                       660          659
  Additional paid-in capital                     684,919      683,072
  Retained deficit                               (48,025)     (57,174)
  Deferred compensation plans                     (9,618)     (10,746)
  Accumulated other comprehensive loss           (44,403)     (43,875)
  Treasury stock                                 (59,860)     (59,860)
                                              ----------- ------------
    Total stockholders' investment               523,673      512,076
                                              ----------- ------------
                                              $2,941,025   $2,557,885
                                              =========== ============


               TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  (Amounts in thousands - unaudited)


                                             Six Months Ended June 30,
                                             -------------------------
                                                 2003         2002
                                             ------------- -----------

OPERATING ACTIVITIES:
  Net income (loss)                                $9,149   $(124,412)
  Adjustments required to reconcile net
   income (loss) to net cash provided by
   operating activities -
     Cumulative effect of change in
      accounting principle                             --     112,786
     Restructuring and asset impairment
      charge                                       23,066      75,407
     Customer recovery related to program
      cancellation                                 15,600          --
     Depreciation                                  79,106      65,373
     Deferred income tax benefit                   (1,808)    (15,090)
     Deferred compensation plans                      460       1,223
     Gain on sale of plant                             --      (3,839)
     Equity in earnings of joint ventures,
      net                                          (3,788)     (8,662)
     Change in working capital and other
      operating items                              (8,709)    (83,478)
                                             ------------- -----------

    Net cash provided by operating
     activities                                   113,076      19,308
                                             ------------- -----------

INVESTING ACTIVITIES:
  Capital expenditures, net                       (98,726)    (69,042)
  Acquisitions, including joint venture
   interests, earnout payments and dividends        3,506     (38,039)
  Proceeds from sale of fixed assets                   --      50,313
                                             ------------- -----------

     Net cash used in investing activities        (95,220)    (56,768)
                                             ------------- -----------

FINANCING ACTIVITIES:
  Proceeds from borrowings                      1,487,428     986,256
  Repayments of debt                           (1,314,182) (1,166,819)
  Net proceeds from issuance of stock                 482     224,903
                                             ------------- -----------

     Net cash provided by financing
      activities                                  173,728      44,340
                                             ------------- -----------

NET CHANGE IN CASH AND CASH EQUIVALENTS           191,584       6,880

CASH AND CASH EQUIVALENTS:
  Beginning of period                              13,699      21,767
                                             ------------- -----------

  End of period                                  $205,283     $28,647
                                             ============= ===========