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Simpson Industries Announces Workforce Reduction

1 December 1998

Simpson Industries Announces Workforce Reduction

    PLYMOUTH, Mich., Nov. 30 -- Simpson Industries, Inc.
announced today that it will reduce its worldwide salary
workforce by approximately 10% through position eliminations, retirements and
organizational changes.  The company will take an estimated pre-tax charge of
$2.5 million in the fourth quarter to primarily cover the expenses of
severance related payments.
    The company said that this action was initiated to improve its global cost
structure going forward while maintaining a strong commitment to support new
product development and customer support activities.  Roy E. Parrott, Chairman
and C.E.O. said that, "While we expect over 20% internal growth by Year 2001,
we are initiating this reduction now to improve our long-term competitiveness
and profitability in 1999 and beyond."
    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 engineered products are focused in three
specific drivetrain and chassis areas:  noise, vibration and harshness,
wheel-end and suspension, and modular engine assemblies.  Simpson's 16
international facilities and test centers are located in North America, South
America, Europe and Asia.
    Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934.  Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by the Company.
    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