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Tower Automotive to Sell Roanoke, Va., Heavy Truck Rail Business

3 October 2000

Tower Automotive to Sell Roanoke, Va., Heavy Truck Rail Business; Take Charge Related to Realignment of Business

 Action Strengthens Technology Focus in Automotive and Light Truck Structural
                             Systems And Modules

    Includes:
    -- Selling Roanoke, Va., heavy truck rail business to Metalsa S. de R.L.
       for more than $55 million
    -- Phasing out heavy truck rail manufacturing in Milwaukee, Wis.
    -- Reducing capital assets in stamping capacity
    -- Resulting in fourth-quarter pre-tax charge in the range of $140 million
    Company indicates third-quarter EPS to be in the range of 20 to 25 cents

    GRAND RAPIDS, Mich., Oct. 2 Tower Automotive, Inc. , announced today that it has signed a
definitive agreement to sell its Roanoke, Va., heavy truck rail manufacturing
business to its joint venture partner, Metalsa S. de R.L.  The sale is for
$55 million in cash plus an earnout to Tower Automotive of up to $30 million
based upon Metalsa heavy truck achieving certain profit levels over the next
three years.  Tower Automotive has a 40 percent ownership position in Metalsa
S. de R.L., a privately owned company headquartered in Monterrey, Mexico.  The
transaction is expected to be completed by the end of December 2000.
    In addition, Tower Automotive announced it will phase out its heavy truck
rail manufacturing and related activities in Milwaukee by March 2001.
    The company also announced that it is reducing its stamping capacity and
consolidating related support activities.  This will include discontinuing
operations at its Kalamazoo, Mich., stamping facility.
    "The decision to exit the heavy truck rail business reflects our intent to
focus our investments and efforts on growing our light vehicle structures and
modules business around the world," said Dugald Campbell, president and CEO of
Tower Automotive.
    "The consolidation of stamping production reflects our efforts to more
effectively utilize our capacity," said Campbell. "Although these actions will
strengthen the enterprise for our stakeholders going forward, including our
colleagues, it is nonetheless a difficult decision because some colleagues
will be affected by the phase-out of certain operations.  We will provide
support and assistance to help affected colleagues find other employment
opportunities."
    The effect on employment levels of the company will be fewer than 800
colleagues.
    The company announced that it is taking an estimated $140 million pre-tax
restructuring charge in the fourth quarter related to this realignment of its
business activities.
    The company also warned that third-quarter earnings would be below
expectations and indicated an estimated range most likely would be 20 to
25 cents per share.  This shortfall was attributed to much more severe impact
on operations and earnings caused by Ranger/Explorer tire issues, continued
heavy truck product sales decline, new product launches, and schedule
disruptions created by irregular releases from its customers.