---

Harvard Industries to Build Outboard Motor Parts

8 October 1999

Harvard Industries to Build Outboard Motor Parts

              The Five-Year Contract With Outboard Marine Corp.
                    Could Be Worth As Much As $50 Million

    LEBANON, N.J., Oct. 7 -- Harvard Industries, Inc.
announced today it has been selected by Outboard Marine
Corporation (OMC) to provide drive and propeller shafts to the outboard motor
manufacturer.  The deal could be worth as much as $50 million over the length
of the contract.
    "This contract represents a significant step forward for Harvard
Industries, since we have been very interested in developing this area of our
business," said Roger Pollazzi, Harvard's chairman and chief executive
officer.
    Pollazzi said Harvard would manufacture the outboard motor parts at its
facility in Rock Valley, Iowa, a machining plant with particular expertise in
the areas of shaft machining and heat treatments. Harvard is building a 16,000
square-foot addition to the 86,000 square-foot manufacturing plant to
accommodate the new OMC work.
    The agreement is in keeping with the strategies of both Harvard and OMC,
Pollazzi said. Harvard, a major manufacturer of OEM automotive parts, has been
trying to increase its non-automotive operations; OMC has wanted to divest
itself of a number of in-house manufacturing operations and move those
functions to outside suppliers.
    "We are very excited about this contract because it reaffirms our position
as a premier precision shaft manufacturer, " said James Gray, president of
Harvard. "  OMC did a very extensive search of machining sources throughout
North America before selecting us.  We're pleased to prevail over some very
fine suppliers.  This is one more step in our strategy of diversifying our
business base and becoming an end product producer."
    Pollazzi said the OMC contract fits into the new business strategy that
Harvard has been pursuing since it emerged from Chapter 11 protection late
last year.
    "We know our best opportunity for growth involves strengthening our
traditional role as a quality maker of OEM automotive parts while developing
new areas of operation," Pollazzi said. "This agreement with OMC is a major
step forward for Harvard in the industrial products arena."
    Harvard Industries designs, develops and manufactures a broad range of
components for OEM manufacturers and the automotive aftermarket, as well as
aerospace and industrial and construction equipment applications worldwide.
The Company has approximately 3,000 employees at 10 plants in the United
States and Canada.