UGN, Inc. New Facility to Manufacture Company's First Acoustic Carpet Application

CHICAGO, July 26 -- UGN, Inc., the leading producer of automotive acoustic, interior trim and thermal management products, announced plans to open a multi-million dollar production facility to produce the company's first RIETER ULTRA LIGHT(TM) acoustic carpet system for North American Japanese transplant automakers. Production of the carpet system in the new Somerset, Ky. facility is scheduled to begin in fall 2006 for 2007 production year vehicles and beyond.

UGN's new acoustic carpet system is the first to be sold to a Japanese transplant automaker in North America. UGN's RIETER ULTRA LIGHT(TM) carpet system offers weight reduction of up to 50 percent when compared to other automotive carpet systems, while reducing interior vehicle noise. Additionally, the system provides superior fit and finish qualities at a competitive price to other carpet systems.

"By acquiring the business to produce an acoustic full-carpet system and pairing it with additional UGN acoustic components shows the Japanese transplant automakers are realizing the acoustic and weight advantages of a full RIETER ULTRA LIGHT(TM) system," said Peter Anthony, president and CEO of UGN. "Our excellent technical support and innovative leadership as an acoustic integrator has helped our customers implement these advanced opportunities as a means to achieve their goals."

RIETER ULTRA LIGHT(TM) made its North American Japanese transplant debut on the 2002 Lexus ES 300. A revolutionary patented product, RIETER ULTRA LIGHT(TM) takes a different approach to the acoustic treatment of the entire vehicle by positively impacting cost, safety and acoustic performance. Made from tuned, multi-layered materials, RIETER ULTRA LIGHT(TM) is environmentally friendly and replaces insulation products that deflect sound with lightweight, sound-absorbing products.

In addition to the carpet application, UGN's new facility also will produce parts for several North American Japanese transplant customers. Beginning in late 2006, the company will produce several of its patented acoustic products at the Somerset, Ky. facility. UGN has agreed to acquire a 300,000 square-foot facility, owned by Pulaski County, and is expecting to create approximately 300 new jobs in the next three years.

When the new facility is in full operation, UGN will be the second largest employer in Somerset, Ky.

Headquartered in Chicago, UGN was incorporated in 1986 as a joint venture between Rieter Automotive Systems and Nihon Tokushu Toryo (Nittoku). Rieter's innovative leadership and theoretical acoustics combined with advanced manufacturing processes and quality system design by Nittoku have established UGN as a preferred supplier of acoustic, interior trim and thermal management products to the Japanese transplant automotive industry in North America. For move information on UGN, visit the company's web site at http://www.ugnusa.com/