Simpson Industries Reports Impact of GM Work Stoppages

2 July 1998
Simpson Industries Reports Impact of GM Work Stoppages
    PLYMOUTH, Mich., July 2 -- Simpson Industries, Inc.
today reported that while the rest of Simpson's business,
especially the diesel engine segment, continues to stay robust, its second
quarter earnings per share will be adversely affected due to the impact of
work stoppages at General Motors plants.
    It is anticipated that earnings for the quarter ending June 30, 1998 will
be affected unfavorably by approximately $0.03 to $0.05 per share due to these
work stoppages.  Until the GM situation is resolved, it will continue to
affect the Company adversely.
    Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy duty
diesel engine markets.  Simpson's products are focused in four groups: noise,
vibration and harshness; wheel-end and suspension; modular engine assemblies
and high-precision machined components.  Simpson's manufacturing units are
located in the United States, Canada, Mexico and Brazil.  European and Asian
operations are located in England, France, Spain and South Korea.
    This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.  Actual results may
differ materially from the anticipated results as a result of certain risks
and uncertainties, including but not limited to general economic conditions in
the markets in which Simpson operates, fluctuations in the production of
vehicles for which the Company is a supplier, labor disputes involving the
Company or its significant customers, risks associated with conducting
business in foreign countries and other risks detailed from time to time in
the Company's Securities and Exchange Commission filings.
    To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 - extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com./