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Core Materials Corporation Announces New Relationship With Lear Corporation

5 June 2000

Core Materials Corporation Announces New Relationship With Lear Corporation

    COLUMBUS, Ohio, June 5 Core Materials Corporation
(Amex: CME) announced today that it has reached an agreement with Lear
Corporation , one of the world's largest automotive suppliers, to
supply sheet molding composite (SMC) products for three new sport utility/
pick up truck models.
    This agreement with Lear, a Tier I automotive supplier, includes
manufacturing of fiberglass reinforced molded products to be used on three new
hybrid sport utility/pick up truck models to be introduced by an automotive
original equipment manufacturer.  Core Materials will produce SMC seat bottoms
and seat backs for these vehicles.  The products manufactured by Core
Materials will be shipped to Lear Corporation, which will produce full seat
assemblies for the automotive original equipment manufacturer.
    Core Materials' estimated revenues, based on planning volumes released by
the automotive original equipment manufacturer and Lear Corporation, would
approach $25 million annually at peak levels, however volumes are not
guaranteed.  Production of two of the models is expected to begin in early
2001 with the third model starting later that year.
    "This is a major piece of new business for Core Materials as it enables us
to aggressively compete for market share in the structural end of the
automotive market and strategically expand our customer base," said James L.
Simonton, president and chief executive officer, Core Materials. "We're very
excited about entering this new market and working with an industry giant such
as Lear Corporation." Lear Corporation , a Fortune 150 company is
headquartered in Southfield, Michigan and had sales in 1999 in excess of
$12 billion.
    Management stated that the company is also examining facility alternatives
as production levels ramp up in 2001.  Alternatives include the use of
existing facilities, as well as the development of new operations.
    Core Materials' management is extremely pleased with the addition of Lear
to the company's customer base as it represents further progress towards
meeting Core Materials' aggressive diversification plan. Currently, Core
Materials' notable customers include: International Truck and Engine
Corporation (formerly known as Navistar International Transportation
Corporation), Yamaha Motor Manufacturing Corporation, Volvo Trucks North
America Inc. and New Holland North America.
    The Lear agreement is further proof of the automotive and trucking
industry's acceptance of SMC. "SMC is an ideal material for this type of
structural application," Simonton said.  "Its high strength-to-weight ratio
and flexible design features contribute to the SUV's overall innovative design
features and decreased weight."
    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 and industrial
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, the recent efforts of Core Materials to expand its
customer base, new technologies, regulatory requirements, labor relations, the
loss or inability to attract key personnel, ramp up of the Company's South
Carolina facility, construction delays, the availability of capital and
management's decision to pursue new products or businesses which involve
additional cost risks or capital expenditures.