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JPE, Inc. Bank Credit Facility

23 June 1998

JPE, Inc. Bank Credit Facility

    ANN ARBOR, Mich.--June 23, 1998--JPE, Inc. today announced that it is in the process of negotiating with its U.S. bank group the terms of a waiver of the requirement that the Company reduce its borrowings under its U.S. credit facility to not more than $70 million by June 30, 1998. JPE was unable to meet the requirement to reduce its borrowings because of a termination of interest by the intended purchaser of Dayton Parts due to a change in strategic direction by such purchaser.
    Dr. John Psarouthakis, Chairman, stated, "Our bank group has indicated their willingness to work with the Company through the sale of its businesses. Because we were unable to complete a sale of our Dayton Parts subsidiary by June 30, the banks and the Company are negotiating a waiver of the credit reduction requirement and we are currently working on the documentation for that waiver."
    JPE, Inc. is a manufacturer and distributor of automotive and truck components for the original equipment manufacturers (OEM) and the aftermarket.
    The statements contained in this press release which are not historical facts are forward looking statements. The Company's actual results may differ materially from those projected in its forward looking statements, including, but not limited to: sales levels; product mix; launch difficulties; customer reimbursement; the ability to obtain price increases; the cooperation from and continued funding by the Company's and JPE Canada's respective lenders; and the timing of and proceeds from the Company's sale of its businesses. In addition, various factors discussed in the Company's various reports filed with the Securities and Exchange Commission may affect such forward looking statements.