Gill Industries Signs Letter of Intent to Purchase Plant in Mexico from Johnson Controls

GRAND RAPIDS, Mich., Jan. 17, 2006 -- Gill Industries Inc. has signed a letter of intent to purchase a plant near Mexico City from Johnson Controls Inc. that will significantly increase its presence as an international supplier of precision assemblies and stamped metal products for the automotive, office furniture and utility vehicle industries.

The proposed purchase of the Mexico City plant will boost Gill Industries total employment by more than 300 people and its total manufacturing space by more than 100,000 square feet. In addition to similar products manufactured by Gill, the Mexico City location brings additional processes, wire and tube bending, and products such as seat frames and tracks.

"The acquisition of the Eansa plant fits in very well with Gill Industries' overall product mix and expertise as a global supplier of stamped products and assemblies," President and Chief Operating Officer Richard Perreault said. "Our goal is to bring additional business to the Eansa plant as a way of providing the highest quality products to our customers at the best possible price points. The acquisition will help position Gill Industries in a low-cost global environment."

Terms were not disclosed in the sale, which is expected to be completed by Jan. 31.

Gill Industries employs about 265 full-time people at its 75,000-square- foot Trenton factory and 465 full-time people at its headquarters, technology center and plants in the Grand Rapids area. The company performs product design, testing and project management at its 85,000-square-foot technology center, and it produces precision stampings and assemblies at its 134,000- square-foot plant in Plainfield Township. It also has a minority stake in Lopez Industries, which performs stamping, wire straightening and other metal forming operations at a 15,800-square-foot facility in Grand Rapids.

Founded in 1964, Gill Industries supplies stamped products and welded assemblies to customers such as Johnson Controls Inc., General Motors, Herman Miller, Club Car, Continental Teves, Steelcase, Magna and Bosch. Certified as a TS16949 company and a Women's Business Enterprise, Gill Industries posted sales of about $123 million in 2005 through sales of components for automotive, office furniture and utility vehicles such as golf cars and all- terrain vehicles.

Gill Industries also recently opened a sales and engineering office in the Netherlands to expand its presence in Europe. Perreault said the European market holds considerable potential and his company already has established relationships with several European customers. The office in Hellendoorn, the Netherlands will perform sales, engineering and design work for European customers on products that initially will be manufactured in Grand Rapids, Trenton and Mexico. The company would consider opening a manufacturing operation somewhere in Europe within the next few years if sales warrant it, Perreault said.

Gill Industries also maintains sales offices in Grand Rapids, Trenton and Milford, Mich. For more information about Gill Industries, visit the Web site at http://www.gill-industries.com/ , or call Matthew Gryczan, Lambert, Edwards & Associates, at (616) 233-0500.