EaglePicher Completes $345 Million Financing

PHOENIX, Jan. 3, 2006 -- EaglePicher Incorporated ("EaglePicher" or the "Company") announced that it has completed a $345 million financing transaction arranged by Goldman Sachs Credit Partners L.P., the proceeds of which were used to repay all obligations under an existing debtor-in- possession credit facility and EaglePicher's pre-petition senior secured credit facility. The new credit facilities consist of a $230 million first lien facility, which includes a $70 million revolving credit facility and a $160 million term loan, a $65 million second lien term loan and a $50 million third lien term loan. The new credit facilities are convertible into financing pursuant to a plan of reorganization acceptable to the agents for the lenders and satisfaction of other conditions, including court approval.

"This financing is an important step towards EaglePicher's reorganization," said Stuart B. Gleichenhaus, interim Chairman, President and CEO of EaglePicher. "This enables us to assure our customers, suppliers and most importantly, our employees, that our capital structure is set, and we have sufficient financing in place to complete our restructuring and execute our business plan."

The Company, its parent EaglePicher Holdings, Inc. and their U.S. subsidiaries filed Chapter 11 petitions in the U.S. Bankruptcy Court in the Southern District of Ohio in Cincinnati on April 11, 2005. EaglePicher is represented by Stephen D. Lerner of Squire, Sanders & Dempsey L.L.P. EaglePicher was assisted in the financing by Houlihan Lokey Howard & Zukin, EaglePicher's financial advisor in its restructuring.

EaglePicher Incorporated, founded in 1843 and headquartered in Phoenix, Arizona, is a diversified manufacturer and marketer of innovative, advanced technology and industrial products and services for space, defense, environmental, automotive, medical, filtration, pharmaceutical, nuclear power, semi-conductor and commercial applications worldwide. The company has 4,200 employees and operates more than 30 plants in the U.S., Canada, Mexico, Korea, and Germany.

EaglePicher(TM) is a trademark of EaglePicher Incorporated.