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Walbro Announces Plans to Consolidate

1 July 1998

Walbro Announces Plans to Consolidate Its Small Engine Diaphragm Carburetor Manufacturing Operations to Enhance Efficiency and Improve Customer Service

    CASS CITY, Mich., July 1 -- Walbro Corporation
has announced plans to consolidate its small engine carburetor
manufacturing operations to enhance efficiency and improve customer service.
As part of the consolidation, the Company will close its diaphragm carburetor
manufacturing facility in the Republic of Singapore.  Most of the Singapore
plant's production will be moved to the Company's new manufacturing facility
in Nogales, Mexico.  The balance will be moved to Walbro's production facility
in Japan.  The shift of production from Singapore will occur by the end of
July.
    In discussing the consolidation, Robert H. Walpole, President,
Asia-Pacific Region, noted, "Our Singapore plant has played an important role
for Walbro for many years.  However, global economic issues and a desire to
enhance customer service resulted in the decision to consolidate manufacturing
operations.  This move will allow us to better serve our global customers by
providing a number of benefits, including increased manufacturing efficiency
and flexibility, reduced lead-times and increased capability to provide high
precision products."
    Walbro's 140,000 sq. ft. facility in Nogales, Mexico, features advanced
manufacturing technologies including CNC (computer numerical control)
machining equipment that allows more flexible manufacturing, reducing
lead-times and providing faster delivery to customers.  Manufacturing
precision has also been significantly enhanced throughout the manufacturing
process, an important issue as emissions regulations require tighter
tolerances.
    "We are confident that these moves will enhance Walbro's ability to
respond quickly to its customers' needs with products that meet the highest
quality standards," Walpole concluded.
    Walbro Corporation is a designer and manufacturer of precision fuel
systems and products for automotive and small engine markets.  Walbro
Corporation has subsidiaries and joint ventures throughout the world,
including North and South America, Europe and Asia.  Walbro common stock is
traded on the Nasdaq National Market under the symbol WALB.