Cambridge Industries, Inc. to Pursue Sale

15 February 2000
Cambridge Industries, Inc. to Pursue Sale
    MADISON HEIGHTS, Mich., Feb. 14 -- The Cambridge Industries'
Board of Directors has approved the decision to solicit buyers for the
company, either in whole or in part, and has engaged the investment banking
firm of Morgan Stanley Dean Witter & Co. to manage the sale process.
    "Cambridge has undertaken these actions for various strategic reasons,"
said Richard Crawford, founder and chairman of Cambridge Industries.  "Our OEM
customers have recognized the strength of the company's technology and
manufacturing abilities by selecting Cambridge to supply products for critical
new program launches in the years ahead.  To satisfy this dramatic increase in
our business, the company needs significant funding to pay for new equipment
and facilities.  After reviewing various financing alternatives, we have
decided that the best way to meet the company's funding requirements, while
protecting the needs of our customers, is to find buyers for some of our
ongoing operations, or if the right opportunity presents itself, the entire
business.
    "Over the past week, articles in the press have speculated on the
company's financial condition and reports that Cambridge is for sale," said
Crawford.  "It is not the company's policy to comment on rumors and
speculation.  However, the company has recently experienced short-term
liquidity problems and is working with its customers, suppliers and lenders to
obtain the funding necessary to permit the sales process to be completed and
the company to operate and launch programs in the ordinary course of its
business.  We are making progress in these negotiations and expect that they
will be concluded shortly."
    The company anticipates providing further information on the sales process
in the second quarter of the year.
    Headquartered in Madison Heights, Mich., Cambridge Industries is a Tier 1
plastic composites supplier to the automotive, light and commercial truck, and
industrial products markets.  Cambridge Industries has 18 facilities in the
U.S., Canada, and South America.