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DGI Investments Inc. Terminates Letter of Intent With JPE Inc.

3 November 1998

DGI Investments Inc. Terminates Letter of Intent With JPE Inc.

    ANN ARBOR, Mich.--(AutomotiveWire)--Nov. 2, 1998--JPE Inc. (OTC BB:JPEI) announced today that the previously announced letter of intent with DGI Investments Inc. has been terminated. DGI terminated the letter of intent with JPE because DGI was unable to satisfy the conditions contained in the letter of intent.
    Donna L. Bacon, president and CEO of JPE, stated, "We are disappointed that the proposed transaction with DGI has failed, because we believed that it offered the potential to bring value to the company, its shareholders and its various other constituencies. We intend to continue to pursue a financial restructuring of the company or the possible sale of our operating businesses. As we have stated previously, however, it is possible that our efforts will not yield sufficient proceeds to provide a recovery for our shareholders."
    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 the cooperation from and continued funding by the company's and Plastic Trim's and Starboard Industries' respective lenders; and the timing of and proceeds from either the company's sale of its businesses or the adoption of a plan of reorganization. In addition, various factors discussed in the company's various reports filed with the Securities and Exchange Commission may affect such forward looking statements.