DaimlerChrysler Awards Significant New Powertrain Business to a Newcor Subsidiary

LAS VEGAS, May 9, 2005 -- EXX INC reported that one of the subsidiaries of Newcor, Inc. (a 99% owned subsidiary of EXX INC) has received purchase orders from DaimlerChrysler Corporation (DCX) to machine axles for two current powertrain programs. The anticipated sales would approximate a 20% increase over EXX's current sales and profitability on an annual basis. Production under the contracts is planned to begin shortly and build up to full production levels in the fourth quarter of 2005.

In 2004, EXX had announced that Newcor had been notified by its major customer, American Axle & Manufacturing, that Newcor would lose certain axle machining business due to American Axle's strategic decision to in-source axle machining. This lost business is still anticipated by Newcor commencing with the withdrawal of two parts in the third quarter of 2005 with increasing volumes of parts being withdrawn through 2006. It is anticipated that when and as American Axle completes the insourcing program the lost business will be approximately the same sales volume and profitability as the new business awarded by DaimlerChrysler.