Blue Water Automotive Systems Realigns Manufacturing to Meet Global Demands

MARYSVILLE, Mich., Nov. 29, 2006 -- Blue Water Automotive Systems today announced a realignment of its manufacturing capacity and corporate structure to optimize resources and provide better value to global automotive customers.

Blue Water will maintain existing production levels, but will shift capacity to become more efficient and effectively utilize its most flexible and capable facilities. As a result, Blue Water will create a stronger platform for the future and achieve a leaner structure that supports its current assessment of revenue levels.

"To remain competitive in today's global environment, it was imperative that we examine every facet of our business to find ways to become more efficient. We are trying to optimize our resources as best as we can," said Michael Lord, CEO, Blue Water Automotive Systems. "We are excited and passionate about bringing value to our customers while continuing to be an innovative and profitable supplier of interior and airflow solutions."

As part of the realignment, Blue Water will discontinue production at three of its manufacturing facilities and transfer production to six existing facilities in the United States. Production will cease at the Lexington, Mich.; Saint Clair, Mich.; and Wauseon, Ohio facilities within the next several months. Additionally, for the affected employees, the company is creating severance packages and working with State Rapid Response teams to aid with job placement and unemployment assistance.

In addition, the company has implemented a new corporate structure and management approach that instills a sense of urgency and an attention to detail. The new focus will involve continuing to win business with current customers, while also focusing on continuing to diversify the company's customer base with business from Asian transplants in the United States.

"We have developed robust, detailed plans to ensure the flawless transition of production and the continuation of high-quality and dependable service that our customers have come to expect," said Lord. "We remain committed to understanding our customers' needs and requirements as we make decisions that impact, or affect, our business relationships."

About Blue Water Automotive Systems

Blue Water is a leader in the design and manufacture of engineered thermoplastic components and assemblies for the automotive industry. The company's product categories include airflow management, full interior trim/sub-systems, functional plastic components, and value-added assemblies. They are supported by full-service design, program management, manufacturing and tooling capabilities. With over 1,600 employees, Blue Water operates 11 manufacturing and product development facilities in Michigan, Ohio, North Carolina, Massachusetts and Mexico, and has annual revenues of $230 million.