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Fruehauf Trailer Corporation Announces Plan of Reorganization

21 April 1998

Fruehauf Trailer Corporation Announces Plan of Reorganization

    CORONA DEL MAR, Calif., April 21 -- Chriss W. Street,
Chairman, President and CEO of Fruehauf Trailer Corporation, announced the
filing of Fruehauf's Chapter 11 Plan of Reorganization yesterday.  The plan
calls for securities held by Fruehauf, which are presently valued at over
$32 million, to be distributed to Fruehauf's secured bondholders.  Fruehauf's
remaining assets, including its trailer manufacturing operation in Mexico and
portfolio of properties, will be transferred to a liquidating trust, to be
named the "End of the Road Trust," for the benefit of Fruehauf's creditors.
Mr. Street will serve as Trustee for the liquidating trust.
    One of the End of the Road Trust's most significant assets is ownership of
Fruehauf de Mexico, which operates a trailer manufacturing plant located
approximately 45 minutes north of the Mexico City airport.  Chriss Street and
his team of reorganization and manufacturing specialists assumed control of
Fruehauf in late April of 1997.  Since then, Fruehauf de Mexico has more than
tripled its production of trailers and has generated operating profits
(EBITDA) on a monthly basis since June 1997.  Mr. Street reported that
Fruehauf de Mexico's market share in Mexico has increased to 35% and that the
backlog of orders is at a four year high due to the strong recovery of the
Mexican economy.
    Chriss Street stated that "the new management team is proud to accomplish
the filing of a plan within one year of assuming operating control of
Fruehauf.  We are especially pleased to announce an agreement in principle
with all creditors' committees to allow unsecured creditors to participate in
the 'End of Road Trust.'"
    This press release and statements made by Fruehauf public filings, as well
as oral public statements by Fruehauf representatives may contain certain
forward-looking statements, as defined by the Private Securities Litigation
Reform Act of 1995.  Any forward-looking statement is, however, subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected.  Without limitation, these risks and
uncertainties include, approval of the plan of reorganization, increased
competition, dependence on key management, reliance on certain customers and
corporate partnerships, shortages of materials, dependence on industry trends,
government regulation, and dependence on a single site.  Readers should review
and consider the various disclosures made by Fruehauf in this press release
and public filings.

SOURCE  Fruehauf Trailer Corporation