Durakon to Complete Manufacturing Facility Enhancements By July

North American Manufacturing Headquarters Provides Laminated Paint Film Products To Major Automotive Manufacturers

CLINTON, Tenn., Feb. 27 -- Durakon Industries, a leading provider of thermoformed products and paint film technology to the automotive industry, announced today that its plans to optimize the manufacturing operations in Clinton, Tennessee are scheduled to be completed by July of this year. This will be the culmination of a two year effort using "lean manufacturing" and "continuous improvement" enabling the company to reduce their manufacturing floor space. The company's initiatives are geared towards maintaining its industry leading position and to continue providing high-quality, value-driven products.

Over the past several years, Durakon has focused on developing and manufacturing exterior automotive components that combine thermoforming and paint film technology. As a result of the company's investments, and the development of this purpose built facility, these technologies are now utilized in high volume applications for such products as rocker panels for the General Motors Buick Lucerne where the company will produce 250,000 panels annually in a variety of color pallets.

"The Clinton facility is unlike any other in the world and our investments there, as well as in our operations in Michigan and Mexico, allow Durakon to maintain a leading position in an extremely competitive marketplace," said Ed Gniewek, Chief Executive Officer of Durakon. "We are pleased that our products continue to gain acceptance and we will continue to invest in the necessary research and development to further build our technology lead and to serve as a key supplier of quality products to an expanding and demanding customer base."

Recent expenditures by Durakon for the Clinton facility were designed to enable the manufacturing process with a clean room environment for the extrusion and lamination process. This was found necessary for the production of paintfilm sheet and lamination of the paintfilm. The facility is rated for a particulate contamination level of 100,000 PPM for extrusion and 10,000 PPM for the lamination room. The "Class 10,000" level is the same used for production of pharmaceuticals. The plant is approximately 166,000 square feet and equipped with new automated manufacturing technology. It serves as Durakon's North American manufacturing headquarters and distribution center for its Duraliner(R) and Allstar(R) domestic Aftermarket bedliners and the new Duracover(TM) for Aftermarket and OE applications.

"We are very pleased with our progress and in the spirit of 'continuous improvement' are making further operational improvements," said Bob Saenz, Vice President of Operations for Durakon. "Optimizing these operations into a single facility will serve to create value added products that have enhanced durability, reduced tooling and piece costs, and other competitive advantages. As we continue to partner with our customers we will find new and innovative applications for our products."

In addition to the Buick Lucerne, Durakon's thermoformed paint film products are also in use on the Cadillac STS-V, the Jeep Liberty Renegade and the 9-7 Saab. The Society of Plastics Engineers have recognized Durakon and its OEM customers by presenting a number of awards over the past several years for technical achievements and commercialization successes in thermoforming and application of paint film.

In addition to its paint film process, Durakon is the largest producer of cargo covers to the automobile industry. The company currently supplies twin- sheet thermoformed cargo covers and side storage boxes for the Chevrolet Avalanche as well as cargo covers for the Honda Ridgeline and the Subaru Baja. Durakon is one of the world's largest and most successful thermoformers of cargo management systems and the company's thermoformed products have been extremely well received by the automotive industry. Now they are in full production of the one-piece hard tonneau designed for the Aftermarket and OEs. Durakon's thermoformed and paint film products have recently won prestigious awards from the Society of Plastic Engineers and Frost & Sullivan for functionality, aesthetics and durability.

About Durakon

Durakon Industries is the world's leading supplier of vehicle protection products, cargo management systems and paint film decorated products. Durakon products include bedliners, tonneau covers, roll-out cargo bed trays, storage boxes and thermoformed paint film products for the OEM and Aftermarket. Durakon's brands include Duraliner(R), Allstar(R), Patriot(R), and Duracover(TM). For more information about the Durakon product line and newer technologies such as paint film technology, contact Durakon at (866) 669-5091 or visit the website at http://www.durakon.com/.