Drew Agrees to Acquire Manufacturer of RV Furniture and Related Products

WHITE PLAINS, N.Y., April 3, 2008 -- Drew Industries Incorporated today reported that its wholly owned subsidiary, Lippert Components, Inc. ("LCI"), has agreed in principle to acquire the assets and business of Goshen, Indiana-based Seating Technology, Inc. and its affiliated companies ("Seattech"). It is expected that the acquisition will be funded from available cash.

Seattech manufactures a wide variety of products primarily for towable RVs, including folding sofas for toy hauler RVs, a full line of upholstered furniture, mattresses, decorative pillows, wood-backed valences and quilted soft good products. This acquisition adds an entirely new product line for Drew.

Seattech's sales for 2007 were approximately $40 million, which represents significant growth from its $11 million in sales in 2003. "We look to continue this pace of growth in 2008 as Seattech builds market share, despite the anticipated RV industry-wide sales decline in 2008 due to current poor economic conditions," said Leigh J. Abrams, Drew's President and CEO. Drew expects the acquisition of Seattech will be immediately accretive to earnings.

Rick Finnigan, majority owner of the Seattech companies, has agreed to enter into a three-year consulting contract, while Joel DeVries, Vice President of Seattech, will enter into a three-year employment contract, and will be responsible for Seattech's day-to-day operations. He will report to Jason Lippert, LCI's President and CEO.

"Seattech's exceptional growth and operating success is the result of our unique approach to meeting customer needs," said Rick Finnigan. "Through our personalized partnerships with our customers, we are able to produce customized, innovative seating products. Our cutting-edge designs and patterns break the cookie-cutter concepts of off-the-shelf designs and provide niche solutions for customers."

"We look for Seattech to be a significant growth opportunity for LCI with these new product lines, as we expect to leverage our extensive marketing and distribution capabilities to our existing customers, many of whom Seattech does not presently sell to," said Jason Lippert.

Lippert added: "Seattech currently operates from five factories, which LCI will lease, and is solely a Midwest supplier to the towable RV industry. LCI will determine the viability of using its nationwide factory network to expand the territorial reach of Seattech's manufacturing and marketing capabilities. In addition, we also plan to explore other markets, such as RV motorhomes and the manufactured housing and marine industries, in which Seattech's products may have a potential market."

The acquisition is subject to the completion of due diligence and the execution of definitive agreements.

About Drew

Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes, including windows, doors, chassis, chassis parts, bath and shower units, and axles. In addition, Drew manufactures slide-out mechanisms for RVs, and trailers primarily for hauling boats. Currently, from 31 factories located throughout the United States, Drew serves most major national manufacturers of RVs and manufactured homes in an efficient and cost-effective manner. Additional information about Drew and its products can be found at www.drewindustries.com.