Tower Automotive Files Agreements with Two Retiree Groups on Future Benefits

Agreements Submitted for Court Approval Represent Key Element in Restructuring

NOVI, Mich., April 6 -- Tower Automotive (Pink Sheets: TWRAQ.PK) today announced that it has submitted for approval to the U.S. Bankruptcy Court settlements with two groups representing current and future retirees. Both settlements include modifications to retiree health care benefits that are imperative to Tower's successful restructuring and emergence from bankruptcy. The settlements cover retired salaried employees company-wide as well as current and future retirees of the recently-closed Milwaukee facility.

The agreement with salaried retirees was reached yesterday with the Official Committee of Retirees. Under the agreement, Tower will continue its current benefit payments to salaried retirees through June 30, 2006. The Retiree Committee will establish a Voluntary Employee Benefits Association (VEBA) trust to administer future benefits. Tower will make a cash payment to the VEBA on July 1 and another payment in cash and/or equity when the company emerges from Chapter 11 reorganization. These payments will total approximately $5 million. If Tower's reorganization is not completed by July 1, the company will make supplemental cash payments to the VEBA until the reorganization is complete. In addition, retiree life insurance will continue at the current benefit levels. The Retiree Committee represents approximately 200 retired salaried workers and their dependents.

Tower also submitted to the Court a previously announced agreement with unions representing employees and retirees at its Milwaukee manufacturing facility. Under that agreement, Tower will continue current benefit payments through June 30, 2006. A separate VEBA will administer benefits for current and future Milwaukee retirees beginning July 1. The company will contribute approximately $30 million in equity in the reorganized company to the VEBA when Tower emerges from bankruptcy. Tower may make additional cash payments if certain financial milestones are met.

The Milwaukee agreement covers approximately 4,600 current and future retirees and their dependents. The Milwaukee location ceased operations last month.

"The decision to ask our retired colleagues for changes to the benefits they receive was a difficult one, but it is a necessary step in achieving the cost savings that are critical to our reorganization plan," said Kathleen Ligocki, president and chief executive officer of Tower. "These agreements, which resolve over 90 percent of Tower's retiree obligations, enable the company to reduce its costs while providing a framework for continued healthcare coverage. We appreciate the retirees' willingness to join with us in doing their part to ensure that our reorganization plan is successful, and we are pleased that agreements could be reached without the need for the Bankruptcy Court to rule on Tower's request to modify the benefits."

About Tower Automotive

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/ .