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Core Materials Announces New Relationship with Volvo Truck Materials

21 April 1999

Core Materials Corporation Announces New Relationship with Volvo Truck Materials Corporation

    COLUMBUS, Ohio, April 21 -- Core Materials Corporation
(Amex: CME) announced today that it has entered an agreement with Volvo Trucks
North America to begin manufacturing products for one of Volvo's leading
heavy-duty truck models.
    This agreement includes manufacturing and assembly of several sheet
molding composite (SMC) parts for Volvo's popular VN Series truck model.  The
reinforced plastic parts manufactured by Core Materials will be used in the
truck's bumpers, air deflectors and a number of other portions of the truck
assembly.
    The business relationship totals approximately $5 million in annual
revenues and represents Core Materials' first new major truck manufacturing
opportunity outside its current work.  The Volvo agreement continues the
company's focused efforts to diversify its customer base, particularly in the
heavy-duty truck market.
    In 1998, Core Materials added a number of new customers, including: Case
Corporation; Deere & Co.; Caradon Doors and Windows, Peachtree Division; New
Holland, North America, Inc.; Able Body Corporation; and Outboard Marine
Corporation.  These companies joined Navistar Corporation and Yamaha Motor
Manufacturing Corporation as Core Materials' customers.
    Core Materials' management cited the company's experience in the
compression molding and assembly of large, complex SMC parts as an important
part of Volvo's decision.  The strategic geographic location of the company's
two manufacturing facilities -- one in Columbus, Ohio and another in Gaffney,
South Carolina -- also fit well with Volvo's Virginia plant.  Core Materials'
QS-9000 and ISO-9002 quality certification was also another key consideration.
    Volvo Trucks North America, Inc. manufactures commercial trucks and
tractors, including the VN Series, Autocar(R) and Xpeditor(R).  Since late
1996, more than 40,000 Volvo VN Series trucks have been ordered and sold, half
of which have come from new accounts.  Headquartered in Greensboro, North
Carolina, Volvo Trucks North America is an affiliate of Volvo Truck
Corporation, Gothenburg, Sweden.
    Core Materials' management is extremely pleased with the addition of Volvo
to the company's customer base as it represents further progress towards
meeting the diversification efforts outlined in the company's strategic plan.
Further discussions between Volvo and Core Materials management to expand this
relationship to include additional products for the VN Series and other truck
assemblies are ongoing.
    Core Materials Corporation (Amex: CME) is a compounder and compression
molder of sheet molding composites (SMC).  The company produces high quality
fiberglass reinforced, molded products and SMC materials for varied markets,
including transportation, marine, agricultural and commercial products.  Core
Materials, with its headquarters in Columbus, Ohio, operates plants in
Columbus and Gaffney, South Carolina.
    This press release contains certain "forward-looking statements" which
involve certain risks and uncertainties.  Core Materials' actual results may
differ significantly from those discussed in the forward-looking statements.
Factors that may cause such a difference include, but are not limited to:
business conditions in the plastics, transportation, recreation and consumer
products industries, the general economy, competitive factors, the dependence
on two major customers, new technologies, the year 2000 systems issue,
regulatory requirements, labor relations, the loss or inability to attract key
personnel, construction delays, the availability of capital and management's
decision to pursue new products or businesses which involve additional cost
risks or capital expenditures.