EaglePicher Completes Restructuring

* David Treadwell named President and CEO * Donald Runkle named Chairman of the Board * Corporate Headquarters Moves to Michigan * Board of Directors Announced

INKSTER, Mich., July 31 -- EaglePicher Incorporated (EPI) and its U.S. subsidiaries have successfully completed their Chapter 11 restructuring process. On August 1, 2006, pursuant to their confirmed plan of reorganization, substantially all the assets of EPI and its U.S. subsidiaries will be transferred to the newly formed EaglePicher Corporation (EPC) and its subsidiaries.

EPI and its U.S. subsidiaries filed Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Ohio in Cincinnati on April 11, 2005.

On December 30, 2005, EPI 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 converted into financing for EPC and provided sufficient funding to complete the reorganization and operate the company into the future.

EPC has entirely new ownership. While EPI was owned by Netherlands-based equity funds, EPC has U.S. ownership, principally affiliates of Angelo, Gordon & Company and Tennenbaum Capital Partners. This is important to the company due to its extensive U.S. government/defense business.

"We appreciate the support of our employees, customers and suppliers during this process and are ready to move forward as a stronger, leaner, and operationally focused company," said David Treadwell, who was named president and CEO of EPC. Stuart Gleichenhaus had served as interim chairman and CEO of EPI.

EPI Restructures

The principal issues sited for driving EPI into bankruptcy were significant drop off in operations performance in several divisions (notably Hillsdale Automotive), failed investment in joint ventures compounded by a high level of debt (over $500 million).

Through its restructuring, EPI aggressively tackled these issues resulting in reduced debt requiring cash interest from over $500 million to $230 million, reduced corporate overhead costs by over $5 million annually, will have invested through 2006 approximately $30 million in operational improvements and business growth (100% in EPI's wholly owned business units), and implemented operational improvements including substantial quality enhancements, increased customer satisfaction metrics, increased productivity measurements and significantly reduced employee turnover. As a result of these efforts, business has increased in most of its divisions.

"This has been a totally focused approach which we will continue to follow," said Treadwell. "It is based on operational excellence, responsible investments and manageable debt."

EPC operations emphasize lean manufacturing, best-in-class quality and most competitive cost. This is balanced with investments in the core business units. "To grow in value for our entire constituency, we need to invest, but it must be in specific areas where we can leverage our operational expertise," Treadwell added. "Additionally, we will keep our debt requiring cash interest payments to a responsible, manageable level.

"This could not have been accomplished in such a short period of time without a dynamic team committed to making the necessary changes," he added. "Our plans are to be a better supplier, customer, and employer."

Stephen D. Lerner of Squire, Sanders & Dempsey L.L.P, represented EPI during the restructuring process. Houlihan Lokey Howard & Zukin served as EPI's financial advisor in its restructuring.

EaglePicher Corporation companies

EPC's operating companies are as follows: Hillsdale Automotive, Wolverine Advanced Materials, EP Boron, EaglePicher Technologies, EP Medical Batteries, EP Pharmaceutical Services, and EP Minerals.

Headquarters moves to Southeastern Michigan

EPC also announced that it has relocated its headquarters to Southeastern Michigan from Phoenix, Arizona. The corporate staff is currently co-located in Inkster, Michigan, with the headquarters for EPC companies Hillsdale Automotive and Wolverine Advanced Materials.

David Treadwell named president and CEO

Treadwell has been named president and CEO of EPC. He joined EPI in July 2005 as president of EaglePicher Hillsdale Division. In November 2005 he also assumed the position of COO of EPI.

Treadwell has earned a solid reputation for working companies through transitions. Most recently, he served as CEO of Oxford Automotive, where he led the $1 billion Tier 1 automotive supplier through a successful restructuring process.

His experience spans more than 20 years. He began his career with the late Heinz Prechter in his automotive, publishing and real estate groups. As CEO of Prechter Holdings, Treadwell was responsible for overall operations, acquisitions and divestitures. Treadwell led the successful divestiture and wrap up of Prechter Holdings after the death of Prechter.

Donald Runkle named chairman of the EPC Board of Directors

Runkle, former vice chairman and CTO of Delphi Corporation, has been named non-executive chairman of EPC. Runkle currently consults for private equity firms, Solectron, and high-tech corporations, and serves as a director of Automotive Acquisition Corp., a private placement firm.

As Delphi vice chairman, Runkle was the senior executive for deploying lean principles, streamlining and integrating engineering, manufacturing, and purchasing. He served on the Board of Directors and Strategy Board. As CTO, Runkle was responsible for research and development and global supply management.

Runkle began his career as a co-op student at Eastman Kodak and Ford Motor Company. Following graduation, he joined General Motors, where he held a variety of positions, including vice president and general manager, Energy and Engine Management Division. Under his leadership, countless product innovations were introduced, and many national racing championships were won including Car of the Year and Top Ten Engines. In 1998/99, Runkle co-led the IPO and spin-off of Delphi from General Motors.

  Also serving on the EPC board of directors are the following:
  -- David Treadwell, president and CEO of EPC.
  -- James Gaffney, former CEO of General Aquatics/KDI Corporation.
  -- Edward D. Horowitz, president and CEO of SES-Americon.

-- General Ron Yates (Ret.), former commander of both Air Force Systems Command and Air Force Material Command.

-- Richard P. Bermingham, residential real estate developer and private investor.

  -- Todd Arden, partner, Angelo, Gordon & Company.
  -- Mark Holdsworth, managing partner, Tennenbaum Capital Partners.

  About EaglePicher Corporation

EaglePicher Corporation, headquartered in Inkster, Mich., is a private equity fund with business in 9 industries: automotive, defense, space, commercial power, nuclear, semi-conductors, filtration, pharmaceuticals, and medical. Its companies include Hillsdale Automotive, Wolverine Advanced Materials, EP Boron, EaglePicher Technologies, EP Medical Batteries, EP Pharmaceutical Services, and EP Minerals.