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Harvard to Provide Consulting Services To Outboard Marine

17 January 2000

Harvard Industries to Provide Consulting Services To Outboard Marine Corporation

    LEBANON, N.J.--Jan. 14, 2000--Harvard Industries, Inc. and Outboard Marine Corporation announced today that Harvard will provide consulting services for OMC's aluminum die casting operations in Waukegan, IL.. The consulting services agreement is the first step toward a possible agreement for Harvard to supply die cast parts for OMC's popular Johnson(R) and Evinrude(R) outboard engines. If consummated, a supply agreement would add up to $200 million in revenues to Harvard over the next five years.
    According to Roger Pollazzi, Chairman and Chief Executive Officer of Harvard, "We are confident that applying the complementary expertise of Harvard and OMC will result in benefits to both parties. It is always a wonderful opportunity to work with industry leaders such as OMC and we will look for ways to optimize our association."
    Jim Gray, President of Harvard, said, "We're gratified that reaching an agreement will help us attain our goal of a 60/40 mix of automotive and industrial revenue. By creating new market opportunities we broaden our revenue sources, thereby providing more consistency to our future financial performance. Also, by utilizing our enterprise systems we are able to generate faster, more profitable growth."
    When completed, the agreement will expand Harvard's growth in the non-automotive sector, and enable OMC, a preeminent manufacturer of market leading powerboats and marine engines, to focus on the superior design, assembly and marketing of its world renowned products.
    OMC is currently in the second year of a plant rationalization program which will include closure of its Milwaukee, WI, and Waukegan, IL, manufacturing facilities. Sandra Meurlot, Senior Vice President of Manufacturing for OMC's North American Engine Operations, said, "Working with Harvard Industries will allow OMC to concentrate on its core competencies including our new Evinrude(R) outboards with Ficht(R) Ram Injection(TM)."
    In August 1999, Harvard and OMC executed a five-year supply agreement for machined propeller and drive shafts with a revenue value of approximately $50 million over the term of the agreement.

    Harvard Industries, Inc. designs, develops, and manufacturers a broad range of components for OEM manufacturers and the automotive aftermarket, as well as aerospace, industrial and construction equipment applications worldwide. The Company has approximately 2,500 employees at 10 plants in the United States and Canada.

    Outboard Marine Corporation is a leading manufacturer and marketer of internationally-known boat brands, including Chris-Craft(R), Four Winns(R), Seaswirl(R), Javelin(R), Stratos(R), Lowe(R), Hydra-Sports(R), and Princecraft(R): marine accessories and marine engines, under the brand names of Johnson(R) and Evinrude(R); FICHT fuel injection(R) the industry's premier low-emission two-stroke engine technology

Statements herein regarding the Company's future performance, including the Company's ability to consummate transactions, constitute forward-looking statements within the meaning of Securities Act of 1933 and the Securities Exchange Act of 1934. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. With respect to the Company's long-term business strategies, management has made certain assumptions regarding the Company's performance which may change or be affected by, among other things, customer demand for the Company's products, and adverse changes in general, market and industry conditions. In addition, there can be no assurance that the Company will be able to successfully identify, negotiate or complete any acquisitions or divestiture transaction, which the Company may be currently contemplating. Management believes that forward-looking statements are reasonable, however undo reliance should not be placed on such forward-looking statements, which are based on current expectations.