Tower Automotive Wins New Business from Two U.S. Automakers

NOVI, Mich., June 7 -- Tower Automotive, Inc. has been awarded new major vehicle structure programs by two different U.S. automakers, the company announced today.

"We appreciate our customers' confidence in our ability to support these two new programs," said Kathleen Ligocki, president and chief executive officer. "We are dedicated to exceeding their expectations and continuing to service them with the highest level of quality and technical expertise."

Tower Automotive, already the world's largest independent supplier of body structures, will continue to grow its business with the first award, a body structures program for Ford Motor Co. Tower Automotive will require a new facility in the southern United States to accommodate the new contract. The new business will result in a significant amount of incremental revenue that will help fill capacity at several current Tower plants, in addition to the new plant that will open in 2007.

The second award being announced today is to supply a large assembly for a different automaker. This assembly will be produced at the company's existing facility in Plymouth, Mich.

"We are proud to be part of this major vehicle program and pleased that by sharing best practices our colleagues have found innovative ways to reduce costs and improve processes," said Bill Pumphrey, president of North American Operations. "That discipline was key to winning this new business."

Capital expenditures were reduced by reusing equipment from another assembly line and producing the new assembly at a plant experienced in building similar parts. Best practices included strict adherence to program management, using a centralized process engineering group, and involving Tower Automotive's assembly plants in the entire development process.

Tower Automotive, Inc. is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. Additional company information is available at http://www.towerautomotive.com/ .