Veltri Metal Products, Inc. Announces Proposed Sale of Substantially All of Its Business and Assets

TROY, Mich., March 22 -- Automotive parts supplier, Veltri Metal Products, Inc. ("Veltri US") and its wholly-owned Canadian subsidiary, Veltri Metal Products Co. ("Veltri Canada") (together "the Company") announced today that they have entered into agreements to sell a substantial portion of their business and assets to Flex-N-Gate Corporation ("FNG") in the US and to FNG's affiliate, Ventra Group Co. ("Ventra") in Canada. Both Veltri US and Veltri Canada continue to operate under Court-supervised protection in the US and Canada, respectively.

The sale agreement in the US covers the Royal Oak, MI plant, the design, manufacturing and sales support of that plant and certain assets at Veltri US's New Baltimore, MI plant. The sale agreement in Canada covers the Howard Avenue-Windsor, Lakeshore, and Glencoe, Ontario plants, the design, manufacturing and sales support of those plants and certain equipment at its North Talbot-Windsor location. The sale agreements are subject to bankruptcy court approval in both the US and Canada. Also they are subject to the opportunity for higher or better offers which may be received at Court- approved auctions in both the US and Canada, which, if needed, would be expected to take place simultaneously in mid- to late April. Subject to Court and regulatory approvals and various other contractual conditions, the Company expects the final closing of the sales to occur in mid- to late May.

VELTRI METAL PRODUCTS, INC. is a leading full-service Tier One designer and manufacturer of high quality, stamped metal components and complex assemblies used by North American automotive vehicle manufacturers including DaimlerChrysler, General Motors Corporation, Ford Motor Company and other Tier One suppliers. The Company specializes in underbody/chassis and unexposed body structure assemblies for passenger cars, light trucks and full-size vans. Veltri's products include frame rail assemblies, inner quarter panels, rear ladder modules, cross member assemblies and trailer hitch assemblies. The Company and its management team are highly respected within the automotive industry for their expertise in supplying multi-component, complex stamping assemblies, an outstanding new program launch record and strong customer and employee relationships. The Company employs over 1,300 people at seven manufacturing facilities in the United States and Canada and is headquartered in Troy, Michigan.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results as a consequence of certain risks and uncertainties, including but not limited to general economic conditions in the markets in which Veltri Metal Products, Inc. operates, the company's leverage and limited access to capital, the restrictions imposed by terms of the company's indebtedness, the company's reliance on major customers and selected models, the company's platform concentration, vehicle manufacturing industry cyclicality and seasonality, competition, increasing customer requirements, a unionized workforce, foreign operations and environmental risks. There is no organized market for the company's common stock, and none is likely to develop.