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Clarion Announces Agreement to Acquire MITO Product Development

30 March 1999

Clarion Technologies Announces Agreement to Acquire MITO Product Development

    HOLLAND, Mich.--March 30, 1999--Clarion Technologies Inc. (OTC: CTCH) Tuesday announced the execution of a definitive agreement to acquire the outstanding stock of MITO Plastics Inc., which does business under the name MITO Product Development, in exchange for shares of Clarion Common Stock.
    The transaction, which is subject to bank and lessor consents, is expected to be completed in April 1999.
    MITO is an award winning, full-service product development company providing program management, industrial design, engineering, prototyping and tooling all under one roof. MITO can manage programs from concept through delivery of complete assemblies.
    MITO's key strengths are its product development process and strong program management capabilities. MITO won a 1997 bronze Industrial Designers Excellence Award. The IDEA award is co-sponsored by Business Week and the Industrial Designers Society of America.
    MITO had 1998 net sales of approximately $5 million. MITO currently operates from a 23,000 square foot facility in Jenison, Mich. and has 45 employees.
    The existing relationships of MITO will assist Clarion in serving several of its target markets including tier two automotive, furniture, and consumer goods. MITO's current customers include Siemans, Steelcase, Bissell, Delphi, Gerber Products and Johnson Controls.
    The MITO operations will serve as the Clarion Technology Center and will become the company's center for product development activities. Clarion will now be able to help its clients leverage their resources by becoming an extension of their existing internal capabilities, or by providing services they do not presently have in-house.
    William Beckman, chief executive officer of Clarion Plastics Technologies Inc. stated, "We are extremely excited about the addition of MITO to the Clarion team. The capabilities of the MITO organization and its people will enable Clarion to serve its customers from the start of product ideation, through product development, tooling and ultimately final production. MITO's capability will help us leverage our manufacturing operations and will become a strategic advantage for Clarion and its customers."
    Clarion Technologies is a Schaumburg, Ill.-based holding company which was established to pursue the strategic acquisition of businesses in the plastic injection molding industry with the goal of achieving growth through consolidation of synergistic businesses.
    Clarion's strategic business objective is to be a full-service supplier to the heavy truck, tier two automotive, consumer goods and furniture industries. As a full-service supplier Clarion will provide capabilities ranging from product ideation to the manufacturing of the final product.

    Except for historical information, this news release contains certain forward-looking statements that involve unknown risks and uncertainties which may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the statements made. Such risks and uncertainties include, but are not limited to, uncertainties regarding the marketing of its products, the availability of funds for ongoing operations and further development or acquisition activities and other risks detailed from time to time in the company's Securities and Exchange Commission filings.