Oxford Automotive Obtains $100 Million Senior Lending Facility

TROY, Mich., Oct. 6, 2004 -- Oxford Automotive, Inc., a Tier 1 supplier of stampings and welded assemblies, announced that, on October 4, 2004, it consummated a transaction with certain members of an ad hoc committee of holders of its 12% senior notes due 2010 to refinance its existing senior credit facility and to provide Oxford with additional operating funds.

The new facility consists of initial and deferred term loans of up to $100 million in the aggregate. Approximately $47 million was used to pay off Oxford's prior secured credit facility, including applicable fees and expenses. The remaining amount, less fees and expenses related to the refinancing, is available to fund operations. The facility is subject to various conditions, including Oxford's continuing compliance with an agreed upon financial budget.

"This new capital addresses short-term liquidity issues and helps with our longer-term strategic efforts to optimize Oxford's value," said David Treadwell, CEO of Oxford. "We will continue working with the ad hoc committee and our lenders on these strategic initiatives."

As previously announced, all noteholders were given the opportunity to participate in the facility on a pro-rata basis. In connection with the financing, Oxford solicited the consent of its noteholders for certain amendments to the indenture governing the senior notes, and temporary waivers of certain existing defaults under other indenture provisions. Oxford obtained such consents from holders of over 75% of the outstanding principal amount of senior notes. As previously disclosed, Oxford does not expect to pay the scheduled October 15, 2004 interest payment on its senior notes.

About Oxford

Oxford, with headquarters in Troy, Mich., is a leading Tier 1 supplier of specialized metal-formed systems, modules, assemblies, components and related services for the automotive industry. Oxford's primary products include structural modules and systems, exposed closure panels, suspension systems and vehicle opening systems, many of which are critical to the structural integrity and design of the vehicle. For more information, http://www.oxauto.com/ .

Forward-Looking Statements

This press release includes statements that constitute forward-looking statements, as that term is defined by the federal securities laws. These statements often include words such as "believe," "expect," "preliminary," estimate," "intend," "anticipate, "plan," "project" or other similar expressions. All forward-looking statements involve risk and uncertainties and there can be no assurances that actual results will not materially differ from expected results. You should not place undue reliance on these statements as they only speak as of the date of this press release. Risks and uncertainties that could cause actual results to vary materially from those anticipated in the forward-looking statements included in this press release include general economic conditions in the markets in which we operate, industry-based factors, and factors more specific to us such as: (1) our ability to obtain adequate or advantageous financing or refinancing of existing debt; (2) the successful completion of our various strategic initiatives; (3) the final results of our ongoing accounting review; (4) the impact of any accounting restatements on our financial results and our ability to complete our financial statements in a timely manner; (5) our ability to comply with the covenants under our credit facility or the successful negotiation of any required covenant waivers and adjustments; (6) the significant amount of our indebtedness and our ability to generate sufficient cash flow from operations to meet our liquidity needs; (7) uncertainty relating to our new program awards and our ability to successfully launch these new programs, especially the Mercedes M-Class and Grand Sports Tourer programs; (8) our dependence on significant automotive customers; (9) our dependence on automotive industry conditions; (10) losses and costs associated with the liquidation through bankruptcy of our Canadian subsidiary; (11) the cyclical nature of the automotive industry; (12) instability in the global economy; (13) the risks associated with conducting business through our foreign subsidiaries, such as our ability to receive distributions from these foreign subsidiaries and foreign currency exchange fluctuations; (14) exposure to increased cost of purchased raw materials and components, such as steel; (15) our inability to reduce costs; labor costs and strikes at our major direct and indirect customers and at our facilities; (16) increased internal production by our automotive customers; (17) the level of competition in the automotive supply industry; (18) our inability to develop or implement new technologies; (19) our inability to meet future capital requirements and the impact of any accounting review and the related issues on efforts to fund these requirements; (20) our exposure to environmental liabilities; (21) our inability to sell receivables; (22) our dependence on key personnel; (23) unexpected interruptions at any of our manufacturing facilities due to equipment failures or delays in deliveries from vendors; and (24) our exposure to product liability and warranty claims.