Cadence Innovation Signs a Letter of Intent to Acquire Collins & Aikman's Plastics Business

TROY, Mich., March 7 -- Cadence Innovation LLC ("Cadence" or "the Company") announced today that it has executed a Letter of Intent ("LOI") to purchase substantial assets of the Collins & Aikman Plastics Business with the expectation that Cadence will take over production of a substantial portion of the programs currently sourced to C&A Plastics. The acquisition will be financed through a mix of external debt financing and a placement of equity by existing shareholders.

This agreement initiates an exclusive due diligence and negotiation period, the successful conclusion of which will result in an asset purchase agreement that will form the basis of a stalking horse bid. The sale is subject to several contingencies, including satisfactory due diligence, agreement with customers and unions, shareholder approvals, and approval of the winning bid by the U.S. Bankruptcy Court.

If the results of our continued diligence meet our expectations, a successful acquisition will enhance both the scope and depth of our capabilities as the C&A Plastics business includes products such as instrument panels and cockpits, door panels/modules, consoles, and air registers, and includes soft touch cast skin and satin nickel paint technologies. C&A supplies major North American automakers through a broad footprint including Mexico, Canada and the United States. "When we combine the footprints and product portfolios of the two companies under the leadership team at Cadence, we have a unique opportunity to establish an expanded leadership position within this industry," said Jerry L. Mosingo, President and Chief Executive Officer.

Separately, Cadence Innovation is experiencing significant organic growth as the result of investments made in the company which began in 2005. Cadence new business awards over the last 18 months total $665 Million (2006 - 2011) in North America. The most significant new business is the instrument panel on General Motor's Lambda platform. "Our design & engineering capabilities, combined with this management team's track record of flawless launches, clearly gives automakers the confidence that we can deliver the kind of world- class quality that they demand," said Mosingo.

The new business awards were accompanied by a significant investment of capital from the existing shareholders of Cadence Innovation. "The recent $50 Million of capital infused by the company's principal shareholders, together with the Collins & Aikman LOI, validate our strategy and demonstrate the commitment of our shareholders in participating in this sector and growing Cadence Innovation," said Mosingo.

Cadence Innovation is an automotive supplier offering design, engineering, manufacturing, and assembly/sequencing solutions for interior and exterior components, systems and modules in four areas - instrument panels, interior trim and cockpits, painted exteriors (including modules), doors/door modules and cargo management systems. The company has over 4,200 employees at 17 facilities in the United States, Hungary and the Czech Republic and supplies its products to automotive manufacturers around the world.