Oxford Automotive arranges up to US$200 million of additional liquidity

Troy, Michigan, October 6 -- Oxford Automotive, Inc., a US$1 billion Tier 1 supplier of specialised welded metal assemblies to the automotive industry, today announced it has reached agreement with its senior secured lenders and equity sponsor to completely refinance the company.

As part of this new refinancing package, approximately half of the company's existing credit facility of US$225 million will be converted to seven- year bond debt and the remainder will be redeemed.

Oxford's equity sponsor, MatlinPatterson Global Opportunities Partners, has agreed to invest US$75 million of new equity into Oxford Automotive as part of the company's program to provide approximately US$200 million of additional financing.

"These financial transactions significantly strengthen our balance sheet and dramatically enhance the liquidity of the company," said John Potter, president and CEO. "We are now extremely well positioned to support our commitment to our customers, employees and vendors."

In connection with these transactions, two Board of Director members, Selwyn Isakow and Rex Schlaybaugh, have retired. Mark Patterson, chairman of MatlinPatterson, has been elected chairman of the board for Oxford Automotive, and Michael Watzky, a partner of MatlinPatterson, has been appointed as a member of the board. There is no change in the executive leadership team at Oxford Automotive.

"Our additional investment is a testament to our confidence and belief in Oxford Automotive and its management team, and we are pleased to be able to work with them in positioning the company for future growth," said David Matlin, CEO of MatlinPatterson, a private equity fund that invests globally in financial reorganisations and turnarounds.

About Oxford Automotive, Inc.

Oxford Automotive, Inc., with headquarters in Troy, Michigan, is a leading Tier 1 supplier of specialised welded metal assemblies and related services. The company, which is privately held, currently has 7,200 employees at 33 locations in nine countries, with technology centres in the United States, France, Germany and Italy. Annual sales in 2002 were US$1 billion.

Liz Pinto, Director of Corporate Communications of Oxford Automotive, Inc., +1-248-577-4983, lpinto@oxauto.com