Hastings Manufacturing Signs Agreement with UAW Local 138

HASTINGS, Mich., Feb. 18, 2004 -- Hastings Manufacturing Company (Pink Sheets: HGMG) today announced it signed a five-year contract with UAW Local 138 on February 13, 2004.

The Hastings, Mich.-based piston ring manufacturer and engine-products specialist reported that the contract includes annual wage increases, annual lump-sum payouts and additional benefits. Other terms of the agreement, which encompasses workers in production/maintenance and office/clerical of UAW Local 138, were not disclosed.

"We are pleased with this agreement and look forward to continuing to drive our business forward with the help of our valuable employees," said Andrew Johnson, president of Hastings. "This new contract is mutually beneficial and allows us greater flexibility as an organization to respond to market conditions and run our business more effectively."

Johnson said it has been 15 years since the last new contract between the union and the Company. Hastings and UAW Local 138 had been operating on several extensions of an original eight-year contract.

"We are pleased with the agreement and look forward to our continued partnership with Hastings," said Randy Hughes, president of UAW Local 138.

Hastings Manufacturing Co. serves the automotive parts market with a complete line of internal engine products including piston rings and pistons sold under the HASTINGS(R) brand name; and gaskets, import pistons, engine bearings and a variety of other engine components sold under the ACL brand. Hastings also markets engine additives sold under the CASITE(R) brand through The Casite Company, a joint venture that markets both directly and through independent representatives. Canadian distribution of all products is handled through a wholly owned subsidiary, Hastings, Inc. located in Barrie, Ontario.