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Harvard Industries Emerges From Chapter 11

26 November 1998

Harvard Industries Emerges From Chapter 11

    LEBANON, N.J., Nov. 25 -- Harvard Industries, Inc. today
announced that its Plan of Reorganization was effective, marking the
completion of its Chapter 11 proceeding.  The Plan of Reorganization
contemplates a conversion of virtually all pre-petition unsecured debt into
100% of the equity of the reorganized Company, subject to dilution for the
incentive options and the warrants to be issued under the Plan.  Holders of
Harvard's PIK Preferred and Common Stock will receive warrants to acquire up
to 5% of the common stock in the reorganized Harvard.
    "This is a great day for our company, customers, employees and suppliers
who have cooperated so closely with us over the past 18 months," said Roger G.
Pollazzi, Harvard's chief executive officer.  "We have worked very hard to
attempt to make this company a winner and we believe that we're on our way to
greater success.  We have obtained exit financing arranged by Lehman Brothers
and have successfully extricated the company from previously unprofitable
operations, and we have an experienced team of leaders that have developed an
entrepreneurial culture within the company."

    Harvard's Goal
    The Company is expanding its focus beyond the automotive industry.  "Our
mission is to strategically grow our business by providing value-added
products to the transportation and industrial sectors through our
engineered-products group," said Pollazzi.  "The technical expertise that
fostered our strong reputation in the automotive industry has countless
applications in other industries."

    New Leadership
    A new senior management team with significant industry and business
restructuring experience is leading the Company.  Harvard President Jim Gray,
Executive Vice President for Strategic Planning Vince Toscano, Chief Financial
Officer Ted Vogtman and Senior VP and General Counsel Jerry Tighe have all
played integral roles in other successful ventures in the automotive industry.

    The Plan
    According to Harvard president, Jim Gray, the Company has a strong focus
on profitability for the present and future.  "The key to our successful
emergence has been our strategic plan," said Gray.  "We focused on product and
customer diversification, reducing costs, investing in technology and research
and development.  We want to retain our automotive OEM business and build a
similarly strong reputation in the engineered products industry."
    Harvard intends to broaden its customer base by entering markets such as
industrial products and equipment, lawn and garden applications, construction
materials and equipment, the automotive aftermarket, and components and
assemblies for heavy-duty trucks and buses.  This is being done with the same
asset base, adding value by supplying completed products to these markets.

    Harvard Industries, Inc., designs develops and manufactures a broad range
of components for automotive original equipment manufactures, the automotive
aftermarket and industrial and construction equipment applications worldwide.
Headquartered in Lebanon, N.J., Harvard's 4,500-plus employees at 15 plants in
the United States and Canada produce total vehicle sealing systems, a variety
of polymer products, high-strength steel assemblies and a wide array of
high-strength aluminum, magnesium and iron products.