BWAS Holdings, Inc. Files Voluntary Chapter 11 Petition for Reorganization

Is Negotiating $30.0 Million of Debtor-in-Possession Financing

Company Conducting Normal Operations

MARYSVILLE, Mich., Feb. 13 -- BWAS Holdings, Inc., the parent company of Blue Water Automotive Systems, Inc. ("Blue Water"), today announced that it and its domestic subsidiaries have voluntarily filed a petition under Chapter 11 of the U.S. Bankruptcy Code, commencing a reorganization proceeding. The Company's filing was in the US Bankruptcy Court for the Eastern District of Michigan.

Blue Water is conducting normal business operations, and remains focused on serving its customers. In accordance with the Bankruptcy Code, suppliers are expected to be paid in full and under normal conditions for all goods and services provided after today's filing. The Company has filed various motions in the Bankruptcy Court, including a motion to pay employees.

Blue Water is negotiating the terms of debtor-in-possession financing for up to $30.0 million. Subject to Court approval, the Company intends to utilize this capital, in addition to cash flow from operations, to fund its operations during the Chapter 11 process.

Michael Lord, President and Chief Executive Officer of Blue Water said, "Blue Water has accomplished a great deal in recent years by implementing a turnaround plan that included right-sizing our workforce, closing facilities, moving machines, increasing productivity, installing new management and launching new products. Unfortunately, we have reached this point because of serious issues in the plastics segment of the automotive parts industry.

"Our senior management team has taken a hard look at our operations and financial position. We believe that initiating the Chapter 11 process at this time is appropriate and necessary, to enable us to move quickly and decisively to address our current challenges as we remain focused on serving our current customers," Mr. Lord concluded.

BWAS Holdings has engaged Foley & Lardner, LLP as its bankruptcy counsel and Huron Consulting Group as its financial advisor.

About Blue Water

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 1,400 employees, Blue Water operates eight manufacturing and product development facilities and has annual revenues of approximately $200 million. The company's headquarters and technology center is located in Marysville, Mich.

   James Sampson
   Blue Water Automotive Systems
   (810) 364-4555 x2285
   jsampson@bwasi.com