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Tower Automotive Agrees to Acquire 40 Percent Interest in Metalurgica Caterina S.A.

6 February 1998

Tower Automotive Agrees to Acquire 40 Percent Interest in Metalurgica Caterina S.A.

    MINNEAPOLIS, Feb. 6 -- Tower Automotive, Inc.
announced today that it has reached an agreement in principle to acquire a
40 percent equity interest in Metalurgica Caterina S.A., a supplier of
structural stampings and assemblies to the Brazilian automotive market.  In
addition, Tower Automotive will also receive an option to acquire the
remaining 60 percent of the equity of the company.
    Metalurgica Caterina had 1997 revenues of approximately $100 million.  Its
principle customers are Volkswagen, Fiat, Mercedes and Ford.  Metalurgica
Caterina operates two manufacturing facilities near Sao Paulo and one in
Betim, in central Brazil.
    In commenting on this investment, Dugald K. Campbell, president and chief
executive officer of Tower Automotive, said, "Brazil represents one of the
fastest growing automotive markets in the world and presents a substantial
opportunity for Tower Automotive's growth over the long-term.  Metalurgica
Caterina has a long history of serving this market and has developed an
excellent relationship with its customers.  The addition of Volkswagen and
Mercedes as customers through this venture is of significant importance to
Tower Automotive, as well as the opportunity to expand our relationships with
existing customers, such as Fiat, Ford and Chrysler, in serving their South
American operations.  We are confident that this venture represents a
significant step in our journey to becoming the global supplier of choice in
our industry."
    Tower Automotive will pay $44 million for its initial investment.  Upon
exercise of the option, an additional $66 million would be payable, subject to
increase based upon the future operating performance of Metalurgica Caterina.
The acquisition of the 40 percent equity interest is expected to occur by the
end of the first quarter of 1998.
    Tower Automotive, Inc., produces a broad range of stamped and welded
assemblies for vehicle body structures and suspension systems for the
automotive manufacturers, including Ford, Chrysler, General Motors, Honda,
Toyota, Nissan, Mazda, Fiat and BMW, and now Volkswagen and Mercedes.
Products include body structural assemblies such as pillars and package trays,
control arms, suspension links, engine cradles and full frame assemblies.  The
company has its operating headquarters in Grand Rapids, Mich., and a corporate
office in Minneapolis, Minn.

SOURCE  Tower Automotive, Inc.