Hastings Manufacturing Reports on Annual Shareholder Meeting

HASTINGS, Mich., Aug. 10, 2004 -- Hastings Manufacturing Company (Pink Sheets: HGMG) today reported the results of its annual shareholder meeting held August 10, 2004 at the Company's headquarters in Hastings, Mich.

Mark Johnson, chairman and chief executive officer of the piston ring manufacturer and engine products specialist, discussed the year and recent events at Hastings Manufacturing, specifically the Company's decision to close its Canadian operations in May 2004.

Johnson also reported that consolidated financial statements for the year ended December 31, 2003 have not been finalized due to the continuing Canadian liquidation.

"We made the difficult decision to close our Canadian operation after it struggled for the past year since we acquired its predecessor company Ertel in 2003," said Johnson. "Due to softness in the Canadian aftermarket and significant issues integrating inventory control systems, we decided to liquidate the assets of the Canadian entity and use the proceeds to eliminate our Canadian debt. We are serving Canadian customers through a network of commercial warehouses across the country."

In addition to discussing issues related to the liquidation of the Canadian operations, Johnson updated shareholders on several other developments:

* In February 2004, Hastings announced it signed a five-year contract with UAW Local 138. Johnson said the contract is very fair to both parties and will allow Hastings to make continued progress on productivity, as well as to revisit terms if the Company does not meet its efficiency targets.

* Hastings is putting more resources behind lean manufacturing efforts, which along with changes and cost reductions in its operations and administration, are expected to reduce costs by $2 million at Hastings when fully realized.

* Though the domestic aftermarket is still quite soft, the Company has seen increases in export, OEM, and private label sales and is focusing on developing these areas and providing additional sales support.

"Although 2003 was a difficult year, we feel that we have taken the necessary actions to accomplish a turnaround in 2004. This improvement is expected to continue into 2005 as our cost reductions and operating improvements take hold and we are able to better concentrate on growing our domestic operations," said Johnson.

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. 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities laws. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially, including but not limited to economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices.