UGN, Inc. to Expand Manufacturing Capacity at Somerset Facility

Facility to more than double production of acoustic carpet system

TINLEY PARK, Ill., Feb. 9 -- UGN, Inc., the leading producer of automotive acoustic, interior trim and thermal management products, announced today a multi-million dollar expansion of its production facility in Somerset, Ky. The expansion, made possible by new carpet system business wins, will allow UGN to add new production lines and boost annual carpet production by nearly 60 percent. The new production lines will manufacture RIETER ULTRA LIGHT(TM) carpet systems and are expected to be operational in late summer 2007.

"The expansion of our Somerset facility marks a significant step for the growth of our company," said Peter Anthony, president and CEO of UGN. "By continuing our commitment to delivering high-quality, innovative products and expanding our capacity, UGN has developed a solid foundation for future success."

The RIETER ULTRA LIGHT(TM) carpet system offers up to a 50 percent weight reduction when compared to traditional carpet systems, while further reducing interior vehicle noise. Additionally, it has excellent fit and finish qualities, and is competitively priced. UGN's Somerset facility also produces a variety of sound treatment products including engine side parts, carpet underlayment and seat upper backs.

UGN's 300,000 square foot Somerset manufacturing facility began production in fall 2006 and has created approximately 90 jobs in the area. With its latest expansion, UGN will add 70 additional positions, and should reach 300 team members when the facility reaches full operation, making it the second largest employer in Somerset, Ky.

"We are pleased to provide UGN with the community support to expand its manufacturing facility in Somerset," said Carrol Estes, executive director, Somerset - Pulaski County Development Foundation. "We look forward to continue working closely with UGN to ensure successful business growth and development, and to create much needed jobs in south-central Kentucky."

Headquartered in Tinley Park, Ill., UGN was incorporated in 1986 as a joint venture between Rieter Automotive Systems and Nihon Tokushu Toryo (Nittoku). Rieter's innovative leadership and theoretical acoustics combined with advanced manufacturing processes and quality system design by Nittoku have established UGN as a preferred supplier of acoustic, interior trim and thermal management products to the Japanese transplant automotive industry in North America. For more information on UGN, visit the company's web site at http://www.ugnusa.com/.