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Tower Automotive Announces Acquisition of Algoods, Inc.

4 May 2000

Tower Automotive Announces Acquisition of Algoods, Inc.

    MINNEAPOLIS, May 3 Tower Automotive, Inc. (NYSE: TWR),
today announced that it has acquired all of the outstanding common stock of
Algoods, Inc. ("Algoods") for total consideration of approximately
$33 million.
    Algoods, which had 1999 revenues of approximately $53 million,
manufactures aluminum heat shields and impact discs for the North American
automotive industry from aluminum mini-mill and manufacturing operations
located in Toronto, Ontario.  Its primary customer is DaimlerChrysler.
    In commenting on the acquisition, Tower Automotive president and chief
executive officer, Dugald K. Campbell, said, "The acquisition of Algoods by
Tower Automotive represents a significant investment in processing technology
for lightweight materials.  The leadership team of Algoods has extensive
experience in using aluminum to provide technical solutions for lightweight
structural products.  In addition, Algoods' patented aluminum heat shield
technology is an excellent complement to Tower Automotive's existing heat
shield capabilities.  This technology also provides opportunities for
application in other vehicle structural products."
    Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle structures and suspension systems for original equipment
manufacturers of automobiles including Ford, DaimlerChrysler, GM, Honda,
Toyota, Nissan, Auto Alliance, Fiat, BMW and Volkswagen.  Products include
body structural assemblies, control arms, suspension links, engine cradles,
floor pans, surface panels and full frame assemblies.  The company is based in
Grand Rapids, Mich., and has its corporate office in Minneapolis, Minn.
    This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended.  Such
forward-looking statements are based on the belief of the management of Tower
Automotive as well as on assumptions made by and information currently
available to it at the time such statements were made.  Such forward-looking
statements relate to, among other things, the anticipated benefits of the
acquisition.  Actual results could differ materially from those projected in
the forward-looking statements as a result of (i) unforeseen difficulties in
integrating the operations of Algoods, or (ii) unanticipated negative reaction
to the proposed transaction by customers or suppliers.