EaglePicher Completes Restructuring

INKSTER, Michigan, August 1 --

EaglePicher Incorporated (EPI) and its U.S. subsidiaries have successfully completed their Chapter 11 restructuring process. Today, pursuant to their confirmed plan of reorganization, substantially all the assets of EPI and its U.S. subsidiaries were transferred to the newly formed EaglePicher Corporation (EPC) and its subsidiaries. EPC has new ownership.

    
    The European market will be served through
    -- EaglePicher Wolverine GmbH in Ohringen, Germany. It is a 100%
       subsidiary of the new Wolverine Advanced Materials, which acquired the
       assets of EaglePicher Wolverine Gasket.
    -- EaglePicher Filtration & Minerals in Munster, Germany
    -- EaglePicher Technologies in Ohringen, Germany

"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.

Treadwell has earned a solid reputation for working companies though transitions. Most recently, he led a US$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, where Treadwell was responsible for overall operations, acquisitions and divestitures. He led the successful divestiture and wrap up of Prechter Holdings after the death of Prechter.

Through its restructuring, EPI aggressively reduced debt requiring cash interest from US$500 million to US$230 million, reduced corporate overhead costs by over US$5 million annually, will have invested through 2006 approximately US$30 million in operational improvements and business growth in its wholly owned business units, and implemented operational improvements. As a result, business has increased.

"This has been a totally focused approach which we will continue to follow," said Treadwell. "EaglePicher operations emphasize lean manufacturing, best-in-class quality and most competitive cost. This is balanced with investments in its core businesses. Our plans are to be a better supplier, customer, and employer."

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. It has operations in North America, Europe and Asia.