EaglePicher Announces Confirmation of Plan of Reorganization

Chapter 11 Emergence expected by July 31, 2006

INKSTER, Mich., June 30 -- EaglePicher Incorporated ("EaglePicher" or the "Company") announced that the U.S. Bankruptcy Court for the Southern District of Ohio has entered an order confirming the joint plan of reorganization for the Company and its debtor affiliates under Chapter 11 of the U.S. Bankruptcy Code. Effectiveness of the plan is conditioned on bankruptcy court approval of settlement agreements entered into with the U.S. Environmental Protection Agency and several states after a mandatory period of public comment. The Company expects that the settlement agreements will receive the requisite approval in time to complete the reorganization by July 31, 2006.

The confirmation order is also conditioned on the Company obtaining sufficient financing to complete its plan of reorganization. As previously announced, on December 30, 2005 the Company obtained new debtor-in-possession credit facilities consisting 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. These credit facilities are convertible at EaglePicher's option into financing pursuant to the approved plan of reorganization and will provide sufficient funding to complete the reorganization.

EaglePicher's plan of reorganization provides for the transfer of substantially all of the assets of the EaglePicher entities to newly formed companies. The consideration for the transferred assets will be paid to each debtor in amounts equal to the value of the assets transferred by that debtor. Under the plan, unsecured creditors of each debtor will receive their pro rata share of that value available for unsecured creditors after satisfaction of all secured, administrative and priority claims. Holders of the Company's 9.75% Senior Notes will receive their distributions in the form of all of the common stock in the new holding company. All other general unsecured creditors of each debtor will receive their distributions at their option either in the form of cash payments over time or a single discounted cash payment.

"This is a very significant milestone towards completing EaglePicher's reorganization," said Stuart B. Gleichenhaus, interim Chairman, President and CEO of EaglePicher. "We now have all the elements in place to complete our reorganization in the very near future. We look forward to continuing to serve our customers with high value products from the EaglePicher group of companies."

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. The Official Committee of Unsecured Creditors is represented by Thomas R. Kreller of Milbank, Tweed, Hadley & McCloy LLP. Miller Buckfire & Co., LLC is financial advisor to the Official Committee of Unsecured Creditors.

Founded in 1843, EaglePicher Incorporated 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.